Takeaway: A drop in daily volatility is encouraging, but without an improving tape it may be premature to suggest that we have turned the page from last year’s bear market.
What Happened: The S&P 500 has gone 7 days in a row without a 1% swing. That matches (for the third time this quarter) the longest such streak since November 2021.
Why It Matters: Over time, volatility and market strength have been inversely correlated. Therefore, an ebbing in day-to-day volatility has typically been evidence of an improving market environment.