The knee-jerk reaction to the FOMC was negative, as 75 basis points was baked into the cake. Consequently, as the Dow gave up approximately 100 points on the news, the CBOE Volatility Index (.VIX) made a brief run back above 29. However, stocks seem to have found some support and VIX is now down 3.46 to 28.78. Moreover, with little else on the economic calendar over the next two days along with the recent rebound in the financials (and barring a complete equity market meltdown), the VIX might drift lower still now that important event risk has passed.
Category: All Indexes
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.