It’s a good idea to keep your eyes on the VIX relative to its 200-day moving average.

Briefly stated, the VIX is the “implied” volatility of the S&P 500. It's where market participants believe market volatility will be over the next 30 days. The VIX doesn’t look backward (historical volatility does), it looks forward. 

The VIX has been above its 200-day moving average since early December,  For long-only traders, it’s been treacherous since early December. For the short side traders, and long volatility traders, the past month and the first few days of January have been a bonanza.

The VIX will eventually move back under its 200-day moving average again and as it does, market behaviour will likely change back again. 

For now, expect heightened daily volatility. And please be careful here because as you’ve seen over the past month, there are a lot of smart people out there, and none have been able to pick a bottom. 

Good luck.