Newsig · Seeking Alpha

Goldman's Panic Index logged third-largest daily drop in 3 years

Market context: VIX: Goldman's Panic Index is a measure of market stress/volatility; a third-largest daily drop signals sharp easing of fear. Bearish for VIX — a large drop in the panic index indicates fear is rapidly subsiding, supportive of risk assets. SPY: A sharp drop in the panic index suggests easing market stress, which is typically supportive of equity prices. Bullish for equities as fear subsides; complements the declining volatility signal.

Why it matters

VIX (VIX Volatility) · Why linked: Goldman's Panic Index is a measure of market stress/volatility; a third-largest daily drop signals sharp easing of fear. Market context: Bearish for VIX — a large drop in the panic index indicates fear is rapidly subsiding, supportive of risk assets.

SPY (SPDR S&P 500 ETF) · Why linked: A sharp drop in the panic index suggests easing market stress, which is typically supportive of equity prices. Market context: Bullish for equities as fear subsides; complements the declining volatility signal.

How SPY usually react

This story is too recent for its own reaction record — we score each asset against the actual price move 24h after publication. These are the long-run figures across every event we have tracked for them.

AssetEventsAvg max moveClosed lower
SPY10+0.67%70%

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