The spike in the CBOE Volatility Index suggests hedging and forced de-risking rather than full capitulation. Geopolitical tension, higher oil prices, and stretched AI-driven valuations are all contributing to the pullback.
Key level to watch is S&P 500 around 6800. If that holds, this likely becomes a healthy correction inside a broader bull cycle. A break below could trigger a deeper reset toward the 6500 zone.
My view: not yet the perfect “golden dip,” but a potential setup forming into the second half of March if volatility cools and macro risks stabilise.
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