The market's cautious optimism is reflected in the decline of the VIX, which has dropped to 14.86. Despite this, the VVIX Index's persistent stickiness indicates that traders are still concerned about potential tail-risk events, maintaining a demand for volatility hedges. The S&P 500's resistance around the 6,100 mark, driven by significant option positioning, highlights the mechanical nature of recent market movements. This is further compounded by the lack of bullish catalysts and headline risks from the new Trump administration, which adds to the uncertainty as the market approaches the fourth-quarter earnings season and the upcoming January FOMC results.
The ProShares Short VIX Short Term Futures ETF (SVXY) experienced a slight increase, rising 0.48% to $51.82 at 15:40 on Thursday, January 23.