A great quiet has descended upon the markets.
It will not last. It cannot last. Markets cannot simply move within such a ‘channel’ from now until time immemorial.
But for now, the Spoos has been been imprisoned within a 100 point range for a solid three months. Consider yourself lucky if you’ve caught some higher beta names that have shown decent movement. Emerging Market Indices are little different. Their slumber began two months ago. The dollar is only now beginning to wake up afer a two month congestion. But even that is only at the top of a range. Which leads me to look at the behavior of the front of the curve moving forward.
Will this ‘great quiet’ last until the election? Will then some new media fed ‘impending shocking news’ become the new focal point, to which the markets hold their collective breath?
Time will tell. But this is getting a bit wearisome …