This week the 21-day annualized volatility of S&P 500 surged 86% while the 14-day ATR rose 36%. Last time comparable increases occurred in a period of a week was in early October 2018 and at the start of a nearly 20% decline in the index.
Below is the daily S&P 500 chart that shows the recent rise in the two volatility measures:
If volatility does not revert to lower levels next week that may trigger portfolio rebalancing and in turn may exert further downward pressure in the stock market.
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Charting and backtesting program: Amibroker