Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
After a late spring and summer of wicked volatility, the market has gone on snooze since a week ago Monday. It appears once the market reassessed Draghi’s comments the Friday after the ECB meeting, everyone has gone on vacation – volume has dried up (yesterday second lowest volume of the year), and the S&P 500 has moved in a relatively small range of 15 points or less for six sessions. Frankly a welcome change from the rollercoaster since April. The closely watched volatility index has also fallen sharply as the global central banker put appears to have calmed everyone. At 13.70 the VIX is at the lowest level post financial crisis era – it hasn’t seen this level since July 2007. This morning appears to be the first there will be a more than modest movement in markets as a slightly overbought condition has been worked off via time rather than price.
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