Backwardation In Volatility Signals A Market On Edge

Key Takeaways

• VIX Curve Backwardation Signals Potential Volatility Crush: The VIX term structure is in backwardation with the nine-day VIX at 27 exceeding the three-month VIX at 25.6, suggesting front-end implied volatility may be getting ahead of itself and setting up for a possible sharp reset as early as Monday.