Keep Your Eye On The VIX
Yesterday’s action in the VIX telegraphed today’s opening rally. Notice it did not take out the high from last Thursday. That is two days of continuing correction in stock prices without exceeding the high in the VIX. Naturally, it could still do so at any time but the longer the VIX doesn’t exceed last Thursday’s high, the more likely that this was just a pullback on the way to DJIA 30,00 and not another March like crash.