Cboe Volatility Index® #VIX @petenajarian @jonnajarian #ITSNOTANOPTION 📙 April 9th 2026

Key Concepts

• Volatility Index (VIX): A measure of the stock market's expectation of volatility based on S&P 500 index options.
• Market Sentiment: The overall attitude of investors toward a particular financial market or asset.
• Market Indices: The Dow Jones Industrial Average (Dow) and the broader "big three" market indices.
• Market Digestion: The process by which the market absorbs and reacts to new information or news.

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Market Volatility Analysis

The speaker provides a technical observation of recent market movements, specifically focusing on the volatility index and its relationship to broader market performance.

• Volatility Trends: The speaker notes a significant fluctuation in the volatility index. On Tuesday, the index reached the 28 level. By Wednesday, it briefly dipped below 20. At the time of the recording, the index was trading between 20.5 and 21, with the speaker questioning whether it will sustain a move back below the 20 threshold.
• Market Resilience: Despite initial negative pressure and "triple-digit" fluctuations, the market has demonstrated a high capacity for "digesting" news quickly. The speaker highlights that the market did not surrender the gains made during the previous session, where the Dow Jones Industrial Average rose by 1,300 points.
• Current Market Status: The speaker reports that the "big three" indices have recovered from earlier negative territory and are currently trading in the green, indicating a positive shift in sentiment despite the volatility.

Key Observations and Perspectives

• Market Reaction to News: The speaker expresses surprise at the lack of aggressive selling pressure, noting that investors are not reacting as negatively to recent news as initially anticipated.
• Technical Thresholds: The 20-point level on the volatility index is identified as a critical psychological and technical benchmark. A move below 20 is viewed as a significant indicator of stabilizing market conditions.

Synthesis and Conclusion

The primary takeaway is that the market is currently exhibiting resilience. Despite the volatility index reaching as high as 28 earlier in the week, the market has successfully absorbed negative news without erasing significant prior gains. The transition of the major indices back into positive territory, coupled with the volatility index hovering near the 20-point mark, suggests a cooling of market fear and a potential return to stability. The speaker remains focused on whether the volatility index can break below the 20 level, which would serve as a key signal for further market confidence.