Volatility on the Rise

It is interesting to note the price action of the CBOE Volatility Index or VIX of late. The S&P 500 appears to be struggling to break through the 1420 - 1425 region. That combined with growing concern that tomorrow's Bernanke comments are not going to be sufficiently "QE bullish" is fueling nervousness among traders who are fearful of being caught in any downdraft resulting from disappointment among the "punch bowl" crowd.

This same concern is also providing selling pressure in the metals with gold bears capping at the $1680 level while nervous longs exit the market. Dip buying however is coming into the metals from traders who suspect that the ECB is getting its act together on its bond buying program.

The result is that both metals have faded from chart resistance levels but are not breaking down technically.

You can see the VIX Chart below: