Traders could be in for a wild ride on Friday because of a couple technical factors. The S&P 500 will have its first rebalancing of the year at Friday’s close, more than three months after the market’s wild swings forced S&P Dow Jones Indices to delay this traditionally quarterly event.
Index rebalancing has often been associated with an uptick in market volatility as index and exchange-traded funds tracking the S&P 500 have to adjust. S&P Dow Jones estimates that over $11.2 trillion in assets are indexed or benchmarked to the S&P 500.
Volatility could also be heightened Friday by quadruple witching — which refers to the expiration of single-stock futures, stock-index options, stock…