Wall Street is getting bullish
On April 14 the Cboe Volatility Index stood under 40. The “fear metric” of the Wall Street has not gone down this low since March 5. Earlier it has gone up to 82.69 in the time of a massive sell-off that brought the S&P 500 down by 34%.
This is a notable development for VIX watchers. The last bullish market started back in March 2009, when the metric dropped to similar levels, following a closing number of 80.86, that has been hit in November 2008.
Traders are currently evaluating the last rally which brought the S&P 500 up by 24% from the last month’s lows. Some traders have been reassured by the extraordinary stimulus package announced by the Federal Reserve and the US authorities. And yet it is difficult to accurately predict when exactly will the lockdowns be removed and how badly will it impact the economy in the end.
According to the VP of trading and derivatives of Schwab Center Randy Frederick, most options are signaling about a “right direction”.