Volatility Back Near All-Time Lows as Fed Discusses Policy

running moneyIn a sign that investors expect absolutely nothing to stem from the Fed’s two-day meeting this week, volatility plunged back near all-time lows on Tuesday.

CNN’s Fear & Greed Index also hit a reading of 84, indicating “Extreme Greed.” The index looks at seven different indicators to determine current market sentiment, including stock price action, put/call ratio, junk bond demand, and the current VIX reading.


Speaking of the VIX, most traders’ favorite measure of volatility was trading at the session lows on Tuesday afternoon. As the Federal Reserve meets today and tomorrow, such a low reading on the VIX indicates zero prevailing fear that the Fed will make any changes to current policy.

The iPath S&P 500 VIX Short Term Futures TM ETN (NYSE:VXX) fell $0.05 (-0.50%) to $11.06 per share in Tuesday afternoon trading. VXX, which offers investors a way to bet on increasing volatility without using options, has fallen nearly 45% year-to-date.


You are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)

Powered by WPeMatico