VIX Hits 21.88: Is Market Fear About to Break Higher?
The stock market enters Monday following Thursday’s bullish reversal and Friday’s sharp bearish reversal. Technology futures are rebounding in pre-market trading, but the Nasdaq futures have suffered a significant decline, and professional traders have given up control. Semiconductor stocks remain under pressure after two difficult weeks, although the current pullback has not yet broken the September lows. A close above Friday’s high would be the first sign that the market is establishing a new direction.
Meanwhile, investors appear to be rotating away from high-risk AI and semiconductor stocks toward defensive names such as Home Depot, Coca-Cola, Procter & Gamble, and Walmart. The VIX surged on Friday but reversed near the 21.88 resistance level. In contrast, energy stocks were among last week’s strongest performers, with the TSX Energy Index gaining more than 6% and the US Energy Select Sector SPDR ETF (XLE) rising nearly 5%. Investors should watch key price targets and Friday’s high for evidence of the market’s next move.
Stephen Whiteside
Monday, October 19, 2026
