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The markets rallied strongly after the Fed non-announcement today (an 80-handle move at one point)… only to fall right out of bed in the last 30 minutes or so of trading. We saw a really dramatic, volatile reversal. Volatility futures actually fell as Powell was talking but then picked back up again later in the session.
On the other hand, there was no real reason for markets to rally after Powell’s non-statement in the first place – the reaction was pure conjecture. So we’re going to start tonight’s video in a weird spot – the SPX. Understanding what’s going on there is going to be instrumental for dealing with risk for the rest of the week.
