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 levels—above 14 … and as high as 22—in
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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