S&P 500: Thin Volume and Low Volatility Challenge Stock Market Breakout Dreams
Investing.com
•
•By Michael Kramer
The S&P 500 faces challenges for a major breakout due to thin trading volume and historically low volatility. With the VIX 1-Day below 10 and one-month implied correlation at just 7, any significant upward move would require real buying rather than volatility expansion. The analyst suggests the market can continue grinding higher incrementally, but volatility mean-reversion could trigger an unwind similar to late October/November. Oil (XLE) is highlighted as potentially bullish if it breaks above its downtrend, with $55 acting as a floor and potential upside toward the $60s.