This week I examine the accelerating downside move in equities as major indices break out of long-standing compression regimes. I focus on the shifting character of the volatility market and why it is no longer responding to “good news” headlines with the same ease as it once did. That’s not all, though. I also discuss:
- VIX futures tracking spot price more closely as a signal of persistent market stress
- The impact of the JPMorgan hedged equity fund put strike at 6475 ahead of Tuesday’s expiration
- Rising implied correlations and their role in driving index-level volatility higher
- The MOVE Index testing the 120 level as 10-year rates continue to climb
Watch the full breakdown for an assessment of the current risk environment and the levels I am watching heading into next week.
Here we go!
