A Higher Lowjob

Amid deteriorating equities, sticky high rates and Dollar, and mixed earnings results so far (see: GOOGL vs. MSFT last evening), we have the VIX making higher lows at a steady pace over the last five or six weeks. 

Beyond that, the VIX remains right around 20, which is historically low if you accept that we are in the midst of a bear market or deep correction currently. 

Overall, the change in character for the VIX, of steadily forming higher lows as opposed to previously this year where each pop would lead to a return to the lower teens, likely sets the stage for a scenario where the VIX pops well into the 30s, 40s, or higher as we eventually see actual fear hit markets after what has been an orderly move lower in equities. 

The Nasdaq is now the only index above its 200-day simple moving average. So I suspect once that is lost we will finally get more intense selloff in equities which is accompanied by a frightening pop in the VIX, the latter of which is clearly sending out warning shots as we speak.