This may be just the beginning of the Black Swan event we’ve been warning about. A break below 25,500 on a close could signal a retest of the March 1, 2018 Dow Jones 24,100 level -1400 pts lower.
By James M. DiGeorgia
The danger of a market meltdown is growing.
The CBOE Volatility Index (^VIX) is spiking up 11% or over 2 points today at 3:08 EST at 19+ which indicates we could see a spike to last the high of just over 28 seen back on March 1st. This leads us to be very concerned that we could see the VIX hit a multi-year high that melts away the vast majority of the gains made since the day after the 2016 election.
President Trump’s myriad of scandals, trade wars, and blowing the lid off our national debt could be all combining into the perfect economic storm. Bulls with long positions should be very careful.