Brace for Increased Stock Market Volatility Amid Uncertain Times

The S&P 500 is currently experiencing low realized volatility, with tight trading ranges and below-average futures trading volumes, indicating a lack of seller activity. However, low implied correlations suggest potential for increased volatility, especially with upcoming economic data releases and central bank policy meetings. Historical patterns indicate that the market may soon see a rise in volatility, similar to previous instances when valuations and market mechanics reached critical levels.