Right Now the Opposite is Occurring
Yesterday was the continuation of the buying after Monday’s traditional pause day. The end-of month upward bias in prices in place along with aggressive buying from hedge funds who are desperately trying not to have their worst month since 2012 created a buying panic that led to yesterday’s rally.
The Fed announcement and Tuesday’s mid-term elections have not been factored in. Normally we would see higher VIX readings heading into these event. Right now the opposite is occurring and this increases the possibility of a spike in volatility should something out of the ordinary occur over the next week.