The $SPX just went from 53 consecutive days without a single -1% drop to five -1%+ drops in the past 20 days.
That's the shift. Volatility regimes don't announce themselves with a press release — they show up in the price action. We went from cruise control to chop in a blink.
This is what mean reversion looks like in real time. Long stretches of calm breed complacency, then the market reminds everyone that 1% moves are normal, not newsworthy.
If you got comfortable with the grind-up, recalibrate. If you're waiting for "the bottom," remember: volatility clusters. More of this is likely before things smooth out again.
Stay sized appropriately. This is the part of the cycle that separates disciplined investors from overleveraged tourists.
That's the shift. Volatility regimes don't announce themselves with a press release — they show up in the price action. We went from cruise control to chop in a blink.
This is what mean reversion looks like in real time. Long stretches of calm breed complacency, then the market reminds everyone that 1% moves are normal, not newsworthy.
If you got comfortable with the grind-up, recalibrate. If you're waiting for "the bottom," remember: volatility clusters. More of this is likely before things smooth out again.
Stay sized appropriately. This is the part of the cycle that separates disciplined investors from overleveraged tourists.