Remember the fantastic volatility in December marked by 2 round trips which led to a 6.5% intraday swing in the Phisix? Such astounding bout of volatility has been replicated in the US last night
The tale of two roundtrips.
The Dow Jones Industrial opened the session strongly, as shown in the above chart from Google Finance. It reached a zenith of 274 points (+1.5%), then gave up all those gains towards midday.
By the afternoon, the Dow was down 136 points (-.77%).
From the intraday high to the lows was a swing of 410 points!!! And from the lowest point, the main US bellwether crept up by 109 points to end the day off by only 27 points.
The sum of the nearly two round trips was an stunning 793 points or a 4.4% pendulum swing!
It’s not just the Dow, all key equity benchmarks as shown above from stockcharts.com experienced similar sharp gyrations.
Such sharp bouts of volatilities are hardly about stability, but about deepening tensions between the bears and the bulls. Sharp volatility as these usually surface during inflection points.
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