#TrumptaxCuts

Financial markets begin this week with a timid breath of fresh air in investor sentiment. This Monday, the VIX volatility index falls to surpass 25 points, moving away from the extreme levels reached earlier this month when it touched 55 points. Although the VIX still exceeds its historical average of 19.5, the downward trend reflects a moderation in nervousness among investors.

The VIX, known as the "fear index," measures the expected implied volatility in S&P 500 options. Drops below 30 are typically interpreted as signals that market tension is starting to ease, although still far from calm in the stock market.

On the other hand, CNN's Fear & Greed index rises this week to 35 points, thus leaving the "extreme fear" zone (which ranges from 0 to 25) to settle in the "fear" range (from 26 to 44). The improvement is significant compared to the 21 points of last week and suggests that, although risk aversion continues to prevail, some investors are beginning to regain some confidence.

This index, which combines indicators such as volatility, market momentum, or demand for risk assets, continues to reflect caution and distrust in the stock environment, although the improvement is evident from the very extreme fear levels (it reached 3) that were reached a few weeks ago.