The market's current landscape reflects a subdued level of anxiety, with implied volatility remaining low and the cost of downside protection near yearly lows. This environment suggests a reduced expectation of near-term volatility, even as the VIX has seen a slight uptick. The tech sector's resilience, bolstered by strong earnings reports from companies like ASML, has helped maintain investor confidence, counteracting potential negative market movements. Despite the VIX's rise to 16.87, it remains well below levels associated with significant market stress, indicating that the market's internal dynamics do not currently signal a broader sell-off.
The ProShares Short VIX Short Term Futures ETF (SVXY) experienced a slight decline, dropping 0.16% to $51.14 as of 9:00 AM on Wednesday, January 29.