Get ready, as Equities rally on a $10B/Month Taper in Asset Purchases by the FED. S&P Futures initially dropped over 9 handles when the news hit the wires, but then rallied over 30 handles to a high of 1806.75 with 2.67MM minis traded. That’s a 46 handle move!! DOW jumped 292 points or 1.8% to climb back above 16K. Nikkei Futures exploded higher by 4.17% or 640 points. Bonds are pretty much unchanged from before the FOMC announcement. Precious metals sold off. So equities are yet in a world of their own, even as we look like we are headed back to 3% on the 10Y.
VIX was absolutely murdered today, dropping -14.87% to 13.80, or dropping over 20% from the intraday high of 16.75. VIX premiums got smoked, with average volume of 633K total VIX contracts traded today. VIX Futures also pushed down significantly.