All those investors on and off Wall Street who refuse to invest in anything but stocks must be sweating through a closet full of shirts by now.

Needless to say, the outlook for the stock market is not pretty. And when second quarter earnings season arrives, well, things could get even uglier — they say.

It's a tough job playing cheerleader for a losing team and waiting for a turnaround, even when Tout TV is on your side. Just ask those die-hard Cubs fans about that if you're wondering. Unfortunately, it seems like it could be a while before this turnaround in stocks materializes.


Let's Take a Look at the "Fear Factor"

Some analysts, however, are looking to the VIX — a measure of options volatility on the S&P 500 index.

The VIX has become known as the fear meter in the stock market. When the VIX is lower or moving lower, traders' fears are low or subsiding. But when the VIX is high or rising, well, that's another story.

Right now the VIX is at moderate levels, but the daily trend is up. However, a slow and steadily rising VIX keeps investors uneasy.

The cheerleaders are hoping for a sharp spike higher to, say, about 30 +/-, along with a sharp spike lower in the S&P 500 index. This would theoretically washout all the negativity and give investors a chance to start fresh and get back on the horse.

Regards
Kiran