Divergence in VIX and SPY

Jamie had a great short in the SPY late on Friday described at the end of this post. I shorted AAPL late on Friday based on the divergence between the VIX and SPY. AAPL was a WL stock that had shown relative weakness throughout the session - so the choice of AAPL was just a relative weakness play. However, the more important point is the divergence between the volatility index (VIX) and the S&P (SPY) on Friday afternoon. Following the rounded bottom pattern in the VIX 15min chart, the divergence region is marked with vertical lines. The flag action in the VIX was screaming to short something late on Friday. The VIX has been a powerful indicator/tool for me over the last few weeks.