Tuesday, February 3, 2015

The correction that seemingly never comes

The S&P 500 is now off 3.5 percent from its recent highs and in the midst of its most volatile stretch since October. And that has some traders wondering if the most anticipated correction in the history of corrections is about to happen.
“Volatility right now is elevated,” said Gina Sanchez, founder of Chantico Global.   “We haven’t seen [the CBOE Volatility Index] sitting at these high levelsabove 14 … and as high as 22in a while. And quite frankly, what that says is that this is going to be an interesting traders market but it is probably going to be a tough investing market.”
It has been 1,220 calendar days since the last 10 percent correction in the S&P 500, the third-longest streak on record. The volatility in the currency and commodities space has spilled over to equities. But despite heightened fears, traders aren’t ready to call for the official correction just yet.

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