It was a short, low volume week for the markets. Ten trading days have passed since the S&P 500’s wild +5% outlier day. Surprisingly, the markets have traded sideways through last Friday. It would have been typical to see more outliers following the biggest up day since March of 2020. As a result, volatility has been declining, bringing back some feelings of normality among investors. This could be considered to be a consolidation, or a digestion, of the advance.
On the other hand, is this the quiet before a storm? Bear markets will do whatever it takes to confuse the masses. Time will tell which is the case.
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