The global markets have seen a bit of a shake-up with the news of a new Covid variant called Omicron. Investors ran towards safety but we quickly realized that the reaction to the new variant was exaggerated.
We might be at the end of the pullback in the equity market if we take a peek at the Put/Call Ratio and the VIX, which are printing at the more extreme ranges of the last few months. These are very useful instruments to gauge sentiment of investors and traders. Based on the chart below, we might be seeing the S&P500 move back higher in the next few days.
