This is just a quick post for short term traders. In following the markets for years and seeing many times where there were large VIX spikes on a given day, corresponding with a significant market sell off, there is a pretty useful pattern that often occurs if the market gaps up the next day, like it is set to today.
If there is a gap up the day after a big VIX spike, the market will often experience a sell off in the morning that takes it below the yesterday's low, but then it often makes a morning or mid day reversal and may rally to close near where it opened or even well above.
So anything is possible, but I am watching for this pattern today to possibly trade long if the intraday set-ups are just right with nice intraday bullish divergence.
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