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By now we all know Bio Tech and Social media darlings have been hit hard of late, which could be masking that the broad market is NOT! So far the S&P 500 is off less than 4% from 200-year highs. Is that much reason to be fearful?
Speaking of fear, the VIX index remains inside of a two-year falling channel and a breakout has not taken place. Once a breakout in the fear index took place at (1) above back in 2007, that was when the market became really weak.
At this time the VIX index remains calm, inside of its falling channel and well below line (2). When should a person start biting their nails? If the VIX breaks above its sideways channel and breaks above (2).