Minutes of Fed failed to spook Wall Street as fear gauge retreats
Minutes from the Fed's March meeting Wednesday noted that a half-percentage point increase could be appropriate at their meeting early next month, plus begin to reduce their $9 trillion asset portfolio.
Meanwhile, the volatility index for US stocks rose sharply to 24.65, the highest level since March 21, while the Fed's officials revealed a faster pace of rate increases than investors expected.
Another gauge of stock market movements, CNN Fear & Greed Index, read 44 Thursday indicating markets are in a state of panic.
Noticed that the volatility index fell to 22.10 so far, after the Fed's March meeting signaling a more aggressive stance, while the Fear & Greed Index has a downward trend since March 29.
What does a pullback of the volatility index mean?
That means despite the action today, the fear is continuing to subside. The kind of move that's incredibly fast, but tends to be short-lived.
--- CNBC's Jim Cramer said.
--- CNBC's Jim Cramer said.
The $Dow Jones Industrial Average(.DJI.US$ fell 0.42% on Wednesday while $S&P 500 Index(.SPX.US$ went down 0.97%.
The volatility index reflects fear, it's normal for it and the S&P to move in opposite directions. It's when they move in the same direction that you have to start asking questions about the sustainability of the market's trajectory.
--- Volatility expert Mark Sebastian said.
--- Volatility expert Mark Sebastian said.
Sebastian also thinks the S&P could see 4,700 again, sometime before Easter.
Source: CNBC, CNN
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