Daily Brief for December 23, 2021

Daily commentary for market and investment insights

What Happened in the Markets?

Today, global markets resumed their favorable atmosphere over less risk of hospitalization with omicron, which languished investor sentiment last month. Commodities and bonds moved mildly. The S&P futures moved higher ahead of real consumer spending and core inflation data, releasing at 8:30 am ET, impacting the following year’s monetary policy.

More optimistic consumer sentiment, decreased VIX levels, and favorable volatility term structure develop supportive implications.

20211223 VIX Term Structure
Source: vixcentral

Yesterday, thin liquidity and low breadth resulted in closing SPX higher. This inferior structure could result in technical flux.

Santa Claus rally is supported by positive gamma and squeezed volatility with improved price discovery.

Disclosure: This article expresses my own views, and I wrote the article by myself. I am not receiving compensation for it. I have no business relationship with any company whose security is mentioned in this article.

Sources: FT.com

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