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AI Insights:
5 hours ago UpdatedFair Value Reasoning:
The current context is Wednesday, March 18, 2026. According to the Federal Reserve's official schedule, this is Day 2 of an FOMC meeting, with a policy decision expected at 2:00 PM ET. The prediction market concerns whether the Russell 2000 (RUT) will close higher tomorrow (Thursday, March 19) than today. Historical data indicates that US equity indices have a daily probability of rising slightly above 50% (typically 52-54%, reflecting the Equity Risk Premium). Given the high volatility associated with FOMC days, the trading session on the day following the announcement (Thursday) is unpredictable but generally retains a slight positive bias. Absent specific intraday crash signals, the fair value is anchored to this statistical base rate, giving 'Up' a slight edge.
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Hedging
Russell 2000
This market directly tracks the daily movement of the Russell 2000 Index (RUT), making it a perfect hedging tool for investors with small-cap exposure. RUT typically exhibits higher volatility than large-caps, with daily moves often around 1% (Score 3). If March 19 falls near an FOMC meeting or economic data release, volatility could be elevated. It also correlates with the S&P 500 and US yields.