Mind SPX 4650

Why do selloffs accelerate? In modern markets, the answer to that question is very often found in the interplay between volatility, liquidity and systematic flows. Market depth tends to diminish around acute vol spikes, and illiquid markets are conducive to gap moves, which is to say more volatility. Large, abrupt moves can push spot through key levels both for dealers (vis-à-vis hedging needs) and managed futures strategies (i.e., the CTA trend universe), triggering mechanical flows with the