· The S&P 500 Index is down 3% and unable to hold its 50-day moving average. The VIX Index is up 20%, around the 40 level.
· Last week, the VIX Index’s ceiling was at 30, which signaled potential for it to climb higher. The market is being driven lower as COVID-19 cases rise and Europe considers a second lockdown.
· Oil is down 5% and the global growth trade, which was booming during the summer, is coming off now due to concerns about whether the pandemic will stay contained or not.
· Volatility will remain into next week as we approach the U.S. election. The VVIX Index also saw a significant increase to 155, showing that VIX futures are moving with the VIX Index.
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