A very unusual technical event occurred during the recent stock market correction, as volatility returned to equities markets.

For four consecutive days the VIX, which measures volatility in the S&P 500, rose above the OVX, which measures volatility on crude oil options. According to the EIA, the VIX has only closed higher than the OVX four other times since the inception of the OVX in 2007; all previous instances were in 2008.

Source: EIA

The market correction did spill into oil prices, but to a much lesser degree. Under normal co...

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