The curious case of volatility starts with the VIX and VIX term structure in a parabolic spike. FED reflation suppressed volatility since mid-March post 1Q16 meltdown. Just like a spring compression in volatility is only achievable for a short duration until a “PoP”. SKEW has tagged the 140 handle implying a 13.10% probability of SPX 30-Day Log Return of a 2std. Dev. In short, we believe a new cycle of volatility has started expected to gain momentum in the summer months.