The market continues to meltdown, and the selling seems to have no end. The S&P broke its November lows, and the Nasdaq is on its way there. One interesting item of note however, is that while the S&P created a decisive break of the lows, the Volatility Index (VIX), is creating an extreme bullish divergence. It is questionable as to whether there is legimacy to this divergence, but it is roughly 42% off of its highs (VIX goes up as the markets go down). This is probably one of the only silver linings in this market, as now it will seek to find bottom in its current free-fall.
Here’s the Nasdaq and S&P charts…
