Volatility Spiking Ahead of FOMC

As the market approaches the historic day next week when the FOMC decides whether to raise interest rates for the first time in nearly a decade, the market is heating up with volatility.  To put the VIX (or /VX for futures) in perspective, I included summer’s low and August’s high.

Screenshot from 2015-12-11 06-16-46

This morning’s rise in volatility is being helped along by a retest of recent lows by the market indices.  You can see the current drop in the Nasdaq 100 futures:

Screenshot from 2015-12-11 06-18-48

If those recent lows hold, look for a nice bounce in morning trading. Otherwise, it could continue to 11/16 lows. In this latter case, it could take days to get there, and perhaps bounce back up before reaching it.




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About Erik Calco

With a passion for Investing, Business, Technology, Economics, People and God, Erik seeks to impact people's lives before he leaves. Contact Erik
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