Market Rolling
We saw the market continue to roll over yesterday.
We hoped that CPI would be the piece of data needed to put a bottom in for the market, but it seems this is not the case.
The Nasdaq closed near the low of the day and is dangerously close to breaking previous lows.
That is a level you are going to want to watch closely today, as we could see further selling if we break the recent lows on the index.
VIX Cooling Off
One of the most troublesome signs that I am seeing is that despite the fact that the market is rolling over, the VIX is not lifting.
In fact, itβs doing the opposite and selling off.
What this tells us is that there is very little fear in the market and investors donβt even feel the need to protect themselves by purchasing options.
Bottoms in the market typically occur with a VIX over $30. We got close to it a few days ago, but have since sold off. Meanwhile the indexes are at lows.
Pay close attention to the VIX because it is one of the best indicators of fear in the market, and I do think that we need extreme fear in order to put a bottom in.
For more commentary on the market and what Iβm seeing/trading, watch this video: