Recent fluctuations in the stock market have caught the attention of investors and analysts alike. The volatility index, which measures market uncertainty, spiked to levels not seen since 2020, causing concern among traders. However, a subsequent rebound led by the 'buy-the-dip' strategy helped stabilize the market sentiment.
The fear index, VIX, displayed a similar pattern on both monthly and daily charts. While the fear level briefly surged, it quickly retreated to more normalized levels, indicating a temporary spike in investor anxiety.
