Despite a slight uptick in the VIX, indicating a modest increase in market volatility, the overall sentiment remains relatively calm. The market's internal dynamics suggest a reduced expectation of near-term volatility, with positive gamma effects continuing to constrain significant movements. The tech sector's resilience, bolstered by strong earnings reports from companies like ASML, has helped maintain investor confidence. This environment has led to a marginal increase in the cost of downside protection, but not enough to signal widespread panic or a significant market downturn.
The VS TR -1x Short VIX Futures ETF (SVIX) experienced a slight decline, dropping 0.38% to $25.98 at 9:00 AM on Wednesday, January 29.