I must admit that after the Fed announcement overnight I kind of asked myself, “ok the waiting game is now over, what’s next?” Many of us thought that the rotation wasn’t quite over but given today’s move, we are back to the old themes. Worries over a second wave of the virus, the economic implications of it and questions on whether we will see a V,W, or U shape recovery soon. Nearly all EU equities have been in the red since the open and all indices are at least 3% down (worst day in Europe in a month). VIX spiked +9% this morning and is currently just below 22 May high resistance at 31.55 (above here could target 40 area with support on recent lows 23.54).Volumes are not poor either (with all indices trading c.15% above vs their 20d AVAT) but strangely enough, it doesn’t feel like that's being reflected here. It does feel quite machine driven today but I guess we will need to wait and see how today’s session evolves.
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