Sentiment indicators -- Market volatility spikes as equity markets extend losses : Market volatility picked up yesterday with the VIX spiking to the highest level in two-months, signalling increased nervousness in the market. The VIX has been notably quiet so far in 2008 despite a move lower in equities, suggesting that market participants in general were not surprised by the recent weakness. However, yestrerday's reaction in the VIX suggests that attitude may be shifting somewhat. This move higher in the "fear gauge" comes on another triple digit loss in equities Yesterdays close (Dow -281, SPX -35, Nas -41). The VIX is currently +3.21 (+13.2%) at 27.59, while the more tech-focused VXN (Nasdaq Volatility Index) is +2.07 (+7.1%) at 30.91. The CBOE put/call ratio is also showing caution in the market, currently at 1.47 -- the highest level since mid-August.
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