matt: i want to welcome mark sebastian over at options. david: always good to speak with you.ant to ask you a little bit about the markets right now, hovering near session highs. trillion,e about $1.7 what is your noteworthy take away from this? at the ballook smash over the last couple of days. we did see a little bit of a weird close in the complex yesterday, but over the last couple of days, the vix has come back below 20. still 90 points lower from where we started. while we have reset were the s&p 500 is going to be trading around, we have also reset volatility. reasons.of we have the long weekend coming up. traders are looking to go on vacation. take away is that now that we have the jolt out of the system, traders are looking around and saying, unless another big shoe drops, which i don't think is going to happen in the next month or so, it may be hard to hold a 25-30 vix because there is not a cataclysmic, immediate risk in front of the markets face. that's my they take away of what we are seeing in the options market right now. it was going to ask you about the volati

tonight we're going off the charts with the help of vix expert mark sebastian, a brilliant technicianho's the founder of optionpit.com as well as being my colleague at realmoney.com, in order to f figure out what the volatility index is signaling about the market because he's our go-to vix analyst. looked in isolation, vix really doesn't tell you very much. what really matters here is the correlation between the vix and the s&p 500. in fact, according to sebastian, the best way to hunt for bottoms and spot tops in the stock market is by searching for moments when the virks and the s&p break their traditional patterns. before we get into the charts, though, let me give you a little background because you need to understand what those tradition l patterns are before you can notice aberrations. normal circumstances when the s&p 500 goes down, the volatility index tends to go up. that makes sense. the larger the decline in stocks the higher you'd expect the so-called fear gage to tgo by. it's scary. you get a little complacent. it's yo it's. sebastian points out when the s&p bottomed in e