With Monday’s U.S. stock selling off and the rising concerns for European stability, the VIX jumped 35% to?19.18. For the day, the fear index closed at 18.99, up 34.02%.
This represented its largest one-day percentage jump since August 2011.
As for U.S. stocks, it was a different story: they had their worst day of the year. The Dow Jones Industrial Average closed down 217 points (-1.55%), the S&P 500 Index was down 28 (-1.82%)?and the Nasdaq Composite Index was off 46 (-1.45%).?
In addition to worries about the looming sequestration, look for Tuesday’s news to bring out the market bears again.
Federal Reserve Chief Ben Bernanke will start his first of two testimony days in front of the Senate Banking Committee at 10 a.m.. The lingering?question facing Bernanke and his peers is the length of time and at what the rate will their bond buying continue. ?
Look for Bernanke to face questions about the sequester, looming?budget cuts that could begin as soon as Friday as well as additional other topics by Congress. ?
There’s also the two home reports at?9 a.m.: Case-Shiller and the FHFA home price index.
It could be an ugly week, fasten your seat belts.