The Federal Reserve’s monetary policy announcement on Wednesday looms as perhaps the biggest threat to flat-lining volatility in U.S. equity markets, after the VIX -- the so-called fear gauge for the S&P 500 Index -- fell to a record intraday low of 9.04 on Tuesday.
It has closed below 10 for an unprecedented stretch of nine days, after ending the day at such levels on just 11 occasions before the current streak. Perhaps the Fed will spur a bounce that will put the index back into double digits, although the sort of increase required has only come on 46 of the more than 160 central bank announcement days over the past 20 years.
Source: Bloomberg Pro Terminal
Jr Trader Ivan Ivanov
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