Fed and Powell delivered one of the most boring events we have ever witnessed. Equity markets did pretty much nothing. Nasdaq popped small higher but did very little after that. For a Fed day this is practically a zero move.
Much more volatility was seen in yields, especially the 2-year yield, collapsing another 10 points. The parabolic move we mentioned recently to the downside continues.
VIX has come off recently, but there has been a bid for this event. Note the VIX vs NASDAQ chart below. More of the same seems to continue, equities with a bid, yields lower, vols lower, but given the fact we are approaching all time highs, any weakness in VIX could be setting up for an interesting long VIX position. The timing is not here, so at this time, as boring as it might sound, we will only wait for a possible long VIX set up.
Source, charts by Bloomberg
