Key Takeaways with Craig

US Equity Indexes were mixed again today, this time, with the Dow Jones Industrials trading lower and the Russell 2000 leading gains, up by over 1%.  Along with the fairly muted price action, implied volatility in CME’s Equity Index options also ticked down today.  On the left side of the image below, we’ve posted two graphs of implied volatility in CME’s E-mini S&P 500 options below to show the importance of looking at implied volatility in the historical context that QuikStrike provides.  The blue line in the top graph shows the 30-day implied volatility year-to-date in 2024 and, as you can see from the dotted line, is trading just slightly under the average closing level.  However, when you look the same graph from the beginning of 2021, you can clearly see that implied volatility is trading at historically low levels. 

It was an otherwise relatively quiet day in CME financial and commodity markets as Treasury yields were nearly unchanged on the day and both Gold and WTI Crude Oil prices remain somewhat range-bound.  As you can see in the two images on the right side of the image below, CVOL in both WTI and Gold options is trading near 6-month low levels.

It is also a relatively quiet week in terms of the economic release calendar, though the market will get the PCE inflation number on Thursday morning at 7:30 AM Central Time.  

Today's Future Price Action

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