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The Case for Chaos in Trying to Pick Bottom of U.S. Equity Rout
In a market bouncing up and down 2 percent a day, investor psychology is taking a beating in U.S. stocks. But nerves may need to fray further before the volatility abates. For all of last week’s twists, measures of investor anxiety sit well below levels from the last selloff, when shares plunged 11 percent in August. Twice last week the Chicago Board Options Exchange Volatility Index jumped more than 10 percent in a day, yet it ended 34 percent below its summer high. To those who monitor sentiment for clues to the market’s direction, these aren’t things that add up to capitulation, when bulls give up and prices ... (full story)