The volatility of the market can be measured in many ways. I read about using the VIX over the 10 year yield and have been tracking this for a couple years. It doesn’t get this high often…
This chart is an interesting one I check regularly but it doesn’t do much until we hit a low. Over the past 10 years a spike down like this always causes a significant bounce… although not always the final low (see July).
Charts courtesy of Stockcharts.com
I’m not calling a bottom with these charts. I am only pointing out that these are at levels that bounces have begun before. It could be that with the liquidity problems it is not that people are too scared to buy - it could be no one has any free money to buy. Keep in mind the SEC is going to enforce the naked shorting rules starting tomorrow. And there a number of things the Fed and Treasury can do with the snap of their fingers to change everything…
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