Bearish Outlook; VIX Spikes

Major indices pulled back sharply on February 12th, erasing the gains from earlier in the week. The SPY closed significantly lower after breaking below key support levels. This sell-off coincided with a notable spike in the VIX, which jumped from the 17s to over 20, indicating a sharp rise in market fear. The price action has pushed the SPY below its key exponential moving averages, signaling a deterioration in the short-term trend. The data suggests a shift in momentum favoring sellers.