The markets got serious this afternoon as another near vertical decent move played out. The January meltup has not turned into a February meltdown. This is a classic move with a counter rally in progress. This could be just a small rally but should produce some sideways action for a little while. I still can’t see wave 1 in Minor degree, but I’m sure it will show up by next week or even sooner.
The VIX blasted up to just under $40 with a massive spike which must correct in time. No spikes opened on the way up so that is actually a good thing. I may still have a small degree 4th wave rally that needs to play out, but when we do switch into a higher degree, the counter rallies will be bigger and take longer. In the first few days the markets lost about a trillion dollars and I bet this has just tripled in the last 3-4 hours of todays trading sessions.
You’re not going to find this “lost” money in the lost and found department, because this money has disappeared in a puff of electronic smoke.