SummaryThe S&P 500 has rebounded from its recent slide and logged yet another very minor all-time high (ATH). Despite the plethora of eye-catching headlines, volatility remains muted -- with the VIX mostly stuck in the 14% to 22% range going back to April 2025. The width of the daily Bollinger Bands has been tight going back to May 2025 and those bands also are now very tight on a weekly basis. Since the November slide in stocks, price has compressed and we have printed higher lows and very minor price highs. Tight price action can be equated to holding a ball under water.