Stocks caught a bid with the S&P 500 rising nearly 1% to erase the bulk of yesterday’s losses.

Volatility has returned to the stage, as the broad index has now moved up or down more than 50 basis points in five of the past six trading sessions.

Recap Oct. 8

Stocks were hammered with the S&P 500 falling more than 1.5%, as the broad index now sits more than 4% below its July 26 high-water mark. The VIX jumped above 20.

All in one day, from risk on to risk off. The trend is now down, full hedges on.

“There’s an old adage, ‘don’t fight the Fed.’ Means that if the Fed is on a tightening course, don’t be long. And if the Fed is lowering rates, as now, don’t be short. Doesn’t always hold true, but often enough to [not] ignore. The Fed has a lot of tools to achieve its objectives.”