As a long-term stock trader, one development in the stock market takes me and many others to our collective knees. It’s a Volatility Index ($VIX) that rises past 20. There has never been a bear market that’s unfolded with a VIX that remains below 20. FEAR, besides the obvious price decline, is the common denominator in every bear market decline. I’ve shown this VIX chart many times, but now that the VIX has soared since the Fed meeting, it’s certainly an appropriate time to remind ourselves of one simple market fact. Stock market performance is at its absolute worst with a VIX above 20. Check out the chart below. This should at least open your eyes to the possibility of lower prices. These calculations date back to S&P 500 ($SPX) performance after April 10, 2013, when the S&P 500 cleared the double top from 2000 and 2007, confirming a new…
