This Is Correction We've Been Looking For: Bauer

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Jan. 27 (Bloomberg) -- Trading Advantage Senior Market Strategist Scott Bauer discusses the market sell-off on Bloomberg Television's "Money Moves." (Source: Bloomberg)

Is that the correction we have not had in the u.s. equity markets?

This is more the correction that everyone has been looking for over the last three or four months.

Today was really big in the sense that we had this huge selloff on friday, a lot of panic going into the weekend.

We saw overseas trading over the weekend, and then we came in this morning slightly higher, and hovering around the flat line.

Volume is not so great, so it is a good thing for the marketplace that we are not seeing a major follow-through to the downside.

The volatility index rose 40%, and that was the biggest increase in september of 2011. how long do you think that stocks from developing nations are going to extend the decline?

You talk about this major rise that we had, if you trend the volatility, not the measurement that they are looking at now, but the implied volatility, you can see a week ago friday that started to take up -- tick up.

That was a precursor to this market selloff, the fear coming into the marketplace.

We have topped out around 18.5 among 19 -- 18.5, 19, that has been a real decent area of resistance.

Everybody is watching what is going on right now, i would not doubt it if we traded in this range for the next few days until ben bernanke's comments come out.

Water traders telling you -- what are traders telling you?

They are saying this was expected, they are not opposed to selling.

Thank you.

We are on the markets again in 30 minutes.

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This text has been automatically generated. It may not be 100% accurate.

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