Finally the Greek elections have come out this weekend and the World Europe is saved. Well maybe not but the markets finally got over another speed bump. Last week we saw a rise in volatility as insurance was being bought up to protect against weekend news. We noticed several correlation breaks between the VIX and the S&P 500. VIX lost its bid when rumors started to fly from overseas.
Monday after the big “bust” from the weekend we saw traders trying to cover those insurance plays. The morning started off slow with a slightly down market, yet we also had a slightly down VIX. This gave away to the great rug pull in volatility as VIX came crashing down 13% today. With nothing ‘major’ on the horizon we should see a decreased volatility, at least in the near future.