Volatility Plummets, Neutral Conditions Linger
As I mentioned yesterday the market is in neutral territory with few short-term edges on either side. Volatility collapsed after the Fed announced that policy was going to remain the same. Such behavior is very typical as the market was pricing in any potential for change. When none occurred, volatility levels adjusted to reflect this stance.
Longer-term the trend remains higher in the US. There are still a number of Country Fund ETFs that are in long-term downtrends but at least here, the trend is up. We’ll wait another day or so until this neutral condition moves to one side or the other.
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