3 Volatility Charts We Are Watching - Emerging Signs of Stress

Will the market get skewed?

Index skew has exploded to the upside, despite the relatively boring SPX price action. SDEX is not the "real" fear index so many refer it to, but shows the relative richness of downside protection in volatility terms. The crowd is very long and are paying up for downside protection. Last time, early April, the rise in SDEX was followed by a 6-7% mover lower in the SPX.