VIX Hits 50 - Where's the Support?

3 Things to keep in mind during times likes this:

1) For long-term investors, this is what you want. Many of us have long-term accounts, retirement stuff, kids college funds, etc. This sort of market action is great for those types of accounts and strategies. And if you're a young investor, just getting going in this business, nothing could be better. Pay attention and take notes (you'll thank me later).

2) For more tactical portfolios, this sort of volatility provides new opportunities, that certainly did not exist in the low volatility regime that we've been in for so long. This is not the time to implement low volatility strategies. This is a time to benefit from the high volatility.

3) When shit hits the fan, just get smaller. Markets are moving fast, so you can get away with much much smaller position sizing in order to accomplish the same goals you had with a VIX at 10, just a month ago.

The rule of thumb for me is you take the VIX and divide it by 16. That gives you the expected % move for the market that day - particularly the S&P500.

So with a VIX at 50, for example, the market is pricing in AT LEAST a 3% daily move for the market.

In other words, during a market environment like this, a 1000 point daily move in the Dow would be a slow day.

So where's support?

Here's how I'm looking at the S&P500 right now. Those former cycle highs from late 2021 - early 2022 stand out to me near 4800: