It is fairly well known that the largest one-day market rallies occur in the middle of bear market trends. I don’t have the table immediately in front of me, but suffice to say today reminds me of one of those days:
So instead of getting this trickle increase of climbing the “wall of worry”, the rallies are now consisting of manic one-day rallies.
It is thus also not surprising that volatility is trending upwards.
Whatever is happening in the markets is not likely over yet. My guess is that this has to do something with the continuation of the withdrawal of liquidity from the US federal reserve, coupled with trade issues in China and a lacklustre economy in Europe and Japan, with the appreciation of the US dollar vis-a-vis other major world currencies. That was a mouthful?
The only question is that the financial markets make it very difficult to tell which variables are causes of others, and whether the chicken or the egg came first.