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Volatility Traders Becoming Less Impressed by Big Market Swoons

  • VIX falls along with the S&P 500 in rare concerted moves
  • Investors already ‘well hedged and well positioned,’ says RBC

What’s remarkable one day becomes commonplace when repeated often enough. It’s a sentiment settling into volatility markets with each lurch between euphoria and panic in the S&P 500.

Case in point is the Cboe Volatility Index, a thermometer for anxiety on Wall Street that normally jumps when the market tumbles. That pattern was absent Thursday, when despite the S&P 500 being down as much as 1.6%, the VIX spent most of the day either unmoved or in free fall. Concerted moves in the two gauges are rare, happening about one in five days.