✌️ Superb Brains ✌️

The last few days have been marked by rising fear of an escalation of the war. Will we blow up all the oil and gas fields next? But the market knows better. So we look at how markets are reacting to this news flow to determine what the fear gauge is saying. A look at the S&P 500 and the CBOE Volatility Index reveals that as the US stock index fell to new lows this week, we did not see new highs in VIX. This shows the market is less concerned about the news flow, suggesting the worst-known news is already discounted. It will take something even more devastating for the fear gauge to rise further. In short, we are at the point of maximum panic. A trend reversal in equity indices may be coming due. News flow will also change as it does, and get back to some level of optimism before things can get worse again.