/biz/ - Business & Finance

>>17618729
I think what happened was the tail wagging the dog. And again, I reference this article:

https://www.zerohedge.com/markets/someone-big-was-utterly-blown-fk-out-heres-reason-behind-todays-unprecedented-vix-move

So, in short....

> market maker gets caught on the wrong side of a VIX trade
> They were forced to keep buying VIX as it was going up, causing it to go up more
> They finally ran out of time, and got their margin call at 3:10, which they were unable to meet
> Their clearing firm then started liquidating their ENTIRE position
> This caused the price of the VIX to collapse
> The collapse of the VIX caused the automated trading programs to go into buy mode
> therefore, S&P jumps, not because anyone thinks things are going to get better, but because the algos saw the drop in VIX and started buying.