The chart above shows the rise in the CBOE Volatility Index (aka, the VIX) over the past couple of months. As the stock market has crashed, the VIX has reflected the amazing, concomitant rise in volatility.

I drew attention to what I believe to be a “Volatility Bubble” late last week. To confirm that the bubble is popping (which would be bullish for the stock market), however, we probably need to see this trendline in place since late August break down. Right now we’re right on the verge.

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