Capitulation Leg Incoming

The market is starting to play out similar to 2018. Back then, the market capitulated into the December FOMC meeting and bottomed five days after. 10 days later, the Fed announced they were going to pause rate hikes and the bull market continued. Later in 2019, the Fed cut rates three times.

Ultimately, it appears that the market needs to crash in order for the Fed to pause rate hikes, similar to what happened in 2018. VIX should spike above 40.