Jason Goepfert is without doubt one of the best market analysts we know. The following chart from his site, courtesy of The Kirk Report, shows where the leading sentiment indicators fell on January 5th. It’s rare to see a whitewash as clear as this. Charts and indicators such as these often point to underlying emerging trends or inflection points. As we now know, it took a few more negative factors to bring about Black Tuesday. A degree of complacency was removed swiftly. The concern now is how quickly it has returned, as measured by the implied volatility of the market using the VIX indicator. This spiked at the end of February, but has since retraced much of that move.

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