Brandon goes live in 30 minutes to walk through what yesterday's price action just confirmed.
Last week, he broke down dispersion — the way individual stocks are moving independent of the index — and laid out two possible paths forward for this market:
Option 1: Dispersion narrows. Stocks start moving together again. The selloff loses steam and we get a tradable bounce.
Option 2: Dispersion stays wide. Volatility expands. The selling accelerates across more names — and the correction gets bigger.
Yesterday's movement just picked option 2.
The VIX remained elevated.
Individual names kept breaking down even when the index tried to hold. That's not exhaustion — that's expansion.
And when volatility expands while dispersion stays high, you don't get orderly pullbacks. You get chaotic selling that spreads.
Brandon's covering:
What yesterday's volatility move tells him about the next leg of this correction
Why high dispersion during a selloff makes the decline harder to trade and more dangerous to fade
The specific levels he's watching to confirm whether this is controlled selling or the start of something worse
If you've been waiting for a bottom signal, this is the session that tells you whether we're close — or just getting started.
See you there.
— TheoTrade