VIX Curve Inversion Tests Trader Resolve With Volatility Rising

Equity bulls, staggered Friday by fresh trade-war posturing, have so far gotten relief this week as the S&P 500 Index recouped half of its late-week losses. Bears, though, haven’t quite capitulated.

That’s evident by taking a glance at the volatility curve, which is usually upward-sloping as investors pay more for protection against losses further in the future. The front of the curve spent most of Tuesday inverted before ending essentially flat. The spot index has been above futures since Friday, generally a signal near-term uncertainty outstrips worries about the coming months.