Market volatility goes both ways: Chart of the Week

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Volatility Index Nouvelles

Nicholas Colas

Volatility is up, and the S&P 500 chalked both its best and worst day of the year this past week. And that you can have both in the span of a few days is an ...

But as our Chart of the Week shows, volatility coming to the markets is less about the direction of the market and more about the size of the moves.

The lesson that big gains and big losses can go hand in hand may be hard to internalize, but it pops up everywhere. And after this week it’s hard not to think about theAs he called one of the biggest shots on Wall Street at the time — a 5,600 year-end price target for the S&P 500 — the inexorably bullish note flagged the likelihood of a big drawdown in the coming months, simply based on the fact that in most bull markets, the second year has an average pullback of 9.4%.

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