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E-Mini S&P500 Futures Volatility Forecast (19/12/2010)

The E-Mini S&P500 reached 1,243 on Thursday but it then plummeted to 1,238 on Friday and this caused a further increase in the volatility curve which is now at 0.6% (9.5% annualised).

The market failed to go higher and this was, according to our opinion, the last chance for the futures to increase in value and breach the 1,240 level and therefore the next trading days should see a constant decline of the price with an augment in volatility which should take the curve to 1% – 1.1% (15.8% – 17.4% in annual terms).

The E-Mini S&P500 went through an extremely choppy year but the last months saw a steady rally of the price and many fund managers, long position traders and investors are now willing to close their longs and bank their profits.

The staff of HyperVolatility suggests you to close all your positions and walk away. For those willing to keep trading there might be short opportunities intra-day.

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