VIX - Sharp drop in VIX suggests return to new normal

Dramatic fall in VIX yesterday after the FED interest rate hike decision suggests investors are pricing in future rate cuts as general belief in the delivery of 7 more rate hikes by the FED in 2022 is not very strong. The drop in VIX is particularly bullish for stocks which rose to session highs towards yesterday's closing bell. At the moment, we think volatility is likely to decline over time which will ultimately result in regained confidence among market participants and eventual recovery of the U.S. stock market.

Please feel free to express your own ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as a basis for taking any trade action by an individual investor. Your own due diligence is highly advised before entering trade.