The VIX Says No More Wham Bam Thank You Ma'am

Since the initial volatility crush off the lows in equities back in April we have seen various and ephemeral spikes in the VIX all quickly erode above the 20 level.

Simply put, as it pertains to VIX spikes: If you blinked, you missed it. 

Recently, however, we have been noting here and with Members that the VIX had been diverging from the various rallies in stocks by remaining uniquely sticky. The VIX hovered in the mid-to-upper teens and recently spiked back above the 20 level, a dividing so very often between equities trending higher versus equities in some type of consolidation or correction. 

Beyond that, and perhaps of the utmost importance, the spike above VIX did not immediately come crashing down into the mid-teens like so many times before. Instead, the VIX regained its footing quickly and is shooting higher yet today, as seen on the updated daily VIX chat, below, during this final hour of trading. 

From a sentiment perspective, those who have been looking for a big VIX spike will of course see this as the beginning of one, while those remaining bullish equities will dismiss the VIX move as another fear mongering, short-lived episode. 

With regional banking issues, geopolitical turmoil, a lingering shutdown, and plenty of other issues to worry about the true catalyst could come from anywhere, in all candor. 

Hence, the most objective way to assess whether volatility is here to stay in lieu of the usual wham bam thank you ma'am type of move is to continue to respect the VIX 20 level--The longer we stay above and build on it for a higher VIX the evidence there is, as quaint as it sounds, of a new volatility regime afoot.