As the market approaches the historic day next week when the FOMC decides whether to raise interest rates for the first time in nearly a decade, the market is heating up with volatility. To put the VIX (or /VX for futures) in perspective, I included summer’s low and August’s high.
This morning’s rise in volatility is being helped along by a retest of recent lows by the market indices. You can see the current drop in the Nasdaq 100 futures:
If those recent lows hold, look for a nice bounce in morning trading. Otherwise, it could continue to 11/16 lows. In this latter case, it could take days to get there, and perhaps bounce back up before reaching it.