Large divergence between volatility expectations and stocks

A Tweet from Tracy Alloway with Bloomberg caught my eye this morning (twitter.com/tracyalloway/status/745855941619384321). She points out that the one-month VIX just tipped over the 3-month VXV. While this has happened many times in the past, I did notice that there is a rather large divergence between the VXV/VIX ratio and the SPX right now. The chart says it all folks. This certainly doesn't guarantee a sharp decline in stock markets, but this is definitely something to watch for today and tomorrow.