Market Signals Point to Nervousness Ahead of Big Events That Could Spell a Top
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Strange market action recently with rising implied volatility and correlations, possibly signalling a market top ahead of big events next week like tech earnings, Fed meeting, jobs report.
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Comparing January and February options, overall implied volatility is up across the board, suggesting nervousness beyond just next week's events.
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In July, similar implied correlation increases preceded the market peak and volatility drop after tech earnings.
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Nvidia continues to gamma squeeze daily, helping float the S&P 500 with implied volatility rising.
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Overall pattern of exhausting rally, nervousness growing in volatility, and concentration risk emerging recalls past market tops.