As markets digest the implications of recent policy decisions, something interesting is happening across multiple asset classes. The wild swings we've seen in stocks, bonds, forex, and crypto are starting to stabilize—and the reason is simple: familiarity breeds calm.

When policy moves feel surprising, traders panic and volatility spikes across the board. But once traders get comfortable with the new policy framework, they stop overreacting. Pricing becomes more efficient, and those dramatic intraday moves flatten out.

Right now, that compression is exactly what we're watching. As investors wrap their heads around the current policy environment, volatility squeezes tighten. This typically creates opportunities: tighter ranges mean clearer support and resistance levels, and that's when technical traders start locking in profits.

For position holders, prepare for a shift. Lower volatility often precedes either sharp breakouts or extended consolidations. The key is watching where the smart money parks itself when things go quiet.