SPX Sees Historic Lows in Volatility and Correlations, VIX at All-Time High

The S&P 500 Index (SPX) is experiencing historically low volatility and correlations. SPX's one-month realized volatility is at a multi-year low of 6, and realized correlations are near zero. Additionally, implied correlations among the top 50 SPX stocks have reached all-time lows. The SPX versus VIX (Volatility Index) is at an all-time high, indicating a significant divergence between stock prices and market volatility. Current implied volatility is below 90-day lows, with today being an early close and tomorrow a holiday. Today's 0DTE straddle is priced at $13.5, with ISM PMI data expected at 10 AM. Market analysts suggest this environment could set up for a potential upside in the near future.