economy

March 12, 2026

The market won't bottom until investors get more scared. Watch this 'VIX' level

Stocks still have a long way to go before selling pressure stemming from the Middle East conflict subsides, according to Wolfe Research.

The market won't bottom until investors get more scared. Watch this 'VIX' level

TL;DR

  • Wolfe Research predicts continued selling pressure on stocks due to the Middle East conflict.
  • The VIX, or fear gauge, spiked to 35.3 and remains elevated, indicating potential for large market swings.
  • Investor fear and oil prices have risen, with Brent crude nearing $100 per barrel.
  • Stocks are still trading near record levels, despite a 3% fall in the S&P 500 since late February.
  • Maximum investor fear, marked by a VIX above 40, has not yet been reached, according to strategist Chris Senyek.
  • Market recovery is expected only after the VIX exceeds 40 or when a resolution to the Middle East conflict is reported.
  • Investors are advised against increasing exposure to riskier assets due to ongoing volatility.

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