Excerpt from CNBC quoting DataTrek co-founder Nick Colas:
…. “Judging by the Cboe Volatility Index, which is considered the best gauge of fear on Wall Street, a tradeable bottom hasn’t been reached, according to Nick Colas, co-founder of DataTrek Research.
“We don’t think [Tuesday] was the bottom of the current correction phase in US markets,” Colas said in his daily note to clients. “The VIX is still too low, estimates are still coming down, and seasonality remains a problem.”
The VIX settled Tuesday at 23.25 and was off about 3.7% in morning trade Wednesday around 22.39.
Colas said “every great trading point” over the past year or so has come with the gauge at considerably higher levels — 28 in May 2021, the 30s in September 2020 and January 2021, when it peaked above 37, and the low 40s in June 2020 and October 2020″….
Read the full article here on CNBC!