A key indicator of US stock volatility dropped to a six month low:
The volatility benchmark, known as Wall Street’s “fear index” because it almost always rises as stocks fall, has dropped 55 percent since soaring to a record 80.86 on Nov. 20, when stocks hit an 11-year low.
“There’s a glimmer of hope,” said Chris Bankovitch, head trader for institutional options at Portsmouth Financial Services, a San Francisco-based brokerage. “Wells Fargo saying they’re going to crush analyst estimates is definitely what the market wants to see.”
Source: MarketWatch
A drop in volatility also obviously improves chances that this rally is going to hold onto most of the gains of the last 5 weeks. 5 consecutive weeks of positive movement!
