A stock market crash is an event, but it is also a process.
After days of historically sharp swings in the stock indices, investors and traders are looking for an equilibrium. This balance is like a line in the sand that signfies safety and growth on one side,
and chaos and losses on the other.
A short while ago, the major stock indexes were flat, or what traders call UNCH, or unchanged, and this signifies widespread indecision and reflection as to what happened between Thursday’s flash crash and Monday’s 400 point recovery.
If you find yourself looking around, wondering what’s going on, you will find yourself in good company.
The options market’s fear gauge, the Chicago Board Options Exchange’s Market Volatility Index, or “VIX,” more than doubled last week, and yesterday experienced its biggest one day drop since 1990.
Today, VIX is down slightly, while the Dow is currently up 44 points. But don’t let that fool you.
All that is clear is that volatility is back.
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