mark sebastian in pits of cme. he made it back safely to chicago i'm happy to say. mark, let's look at the vix. its e it is close to 12 handle. almost below 13. is it time to hedge that a little? >> unwith things -- david: it does have a 12 handle. came below 13, closing at 12.93 go ahead. >> 12.93. to most outside observers that seems relatively low, when you look at market movement, russell has least amount of movement in the last 10 years. s&p, right near its record low in terms of movement over last 10 days, matching what it was doing? june. we're seeing a market crawling at this incredible snails pace. so why is the vix at 129.93? tell you why. there is still buying pressure on puts. 12.93. tells us big money managers are still buying downside protection. they're willing to give up a little bit upside to make sure they don't catch a lot of downside. money managers doing it. retail traders doing it. when smart money buying puts, they like upside but a little scared. david: gotcha. >> that is way i look at market right now. liz: jamie, i call you the smart money.

. >>> and mark sebastian from the pits of the cme. mark, i want to talk about the vix, it's very low. i believe it was in the 12 range at a 12 handle a day or so ago. but the market is not rallying? what does that tell you when the vix is this low without a market rally? >> this is a very weird day. i kept expecting the market to go with the way the vix was acting. any market sell-off is a bit of a head fake. if you look at the russell 2000 and the move in interest rates, what i think we've seen the last week or so has been the big reset of traders trying to reposition themselves. now that it's apparent that the fed is not raising rates in june. and i think we're finally trying to figure that out. if we'd gone two weeks ago and the s&ps were down 12 points, we see the vix up a buck, maybe a buck and a half and trading over 15. now we're here and the vix is around 13 bucks. what i think this is pulling toward is a brief consolidation, and i think a potential serious move higher toward that 2150 level in the s&p 500, i think we're prime

mark: how much of a concern? sebastianthis question of dollar to thdebt, it is more of a question of refinancing. liquidity is like the sea and the sea is pulling itself out of the rest of the world into the u.s. the u.s. is basking in liquidity coming from everywhere else. that is being retrieved from emerging markets. yields have to back up and be higher. what they're doing is letting their -- lisa: the fed is putting june on the table. there has been a reversal because it looks like people are pushing back their expectations for rate hikes. a 10% chance of june. it underscores how they are paving the way for a june rate hike and yet their words are dovish enough, is being interpreted as them taking it off the table. or being less committed to a june rate hike. they are more tempered in their discussion of the economy. they're clearly concerned about emerging markets. it comes back to us. how much can the u.s. keep growing when the rest of the world is slowing so much? constance: we only get 12% of our economy from trade