Chart of the Day - Monday, May 11th, 2020

Today’s Chart of the Day was shared in a research note by Frank Cappelleri of Instinet (@FrankCappelleri). Frank points out that the Volatility Index ($VIX) made a new low last week, while the Volatility of the Volatility Index ($VVIX) did not. This divergence is a sign that Volatility could pick-up again in the coming weeks. Keep in mind, a similar divergence between $VIX and $VVIX preceded the February-March crash.  Will this divergence prove to be a timely signal once again? Only time will tell, however, this is certainly a potentially bearish development worth monitoring in the near-term.