Breathtaking Volatility

Breathe deep the gathering gloom
Watch lights fade from every room
--Moody Blues

When markets approach the cusp of major change, one characteristic that is difficult to remember until you're experiencing it once again is the volatility. Chunky intraday moves that often finding indexes jumping or falling 0.5-1.0% in a matter of minutes. Between days, 3%+ moves are not uncommon.

Sometimes the volatility suddenly dissipates and the dominant trend resumes. Other times the volatility translates into major trend change.

The outcome of our present case remains to be seen. Meanwhile, the volatility is breathtaking.