The low volatility continued today. The very low level of realized volatility in the market is a bullish signal. This week was the lowest volatility week so far this year. Today's intra-day range on the S&P was only flat to +0.4%.
The energy sector (up +2.0%) led the market higher. Oil traded up +2.4%. At an industry level, the energy equipment and services industry was the best performing industry up +2.8%. Energy, health care and tech fueled the late afternoon rally. Biotech and pharmaceutical stocks, which had been underperforming earlier in the day, showed relative strength to rally into the close.
Michael Grove, CFA