The VIX futures were in contango today. That means that the nearer term months were at a higher value than the following months. Usually, it is the other way around backwardation, with the futures in the following months gradually increasing in price.
This is a signal that a nearer term and disruptive spike in risk is being expected by a number of traders, and they are seeking protection from it.
If you look at the NDX futures chart below, you can see how every day for the past three days that the futures have slumped heavily lower, recovering a bit in the afternoon while Asia and Europe are asleep, only to drop sharply again the next day, and fail to completely recover.
Stocks may turn around and rally higher from here. But the risk for equities is pronounced.
Gold and silver took a hit today, a post Non-Farm Payrolls punch in the gut. It is what they do.
The dollar was only marginally higher.
