Tom Lee Says a VIX Signal Points to a Stock Market Bottom

Fundstrat's Tom Lee said the recent reversal in the VIX volatility index signals that last week's equity selloff marked a market low, while Charles Schwab's Kevin Gordon cautioned that the ensuing rally may not be durable. The divergence puts the CBOE Volatility Index's sharp retreat from its spike at the center of the debate over whether the pullback has run its course. Lee's call rests on the VIX failing to sustain its surge and reversing lower, a pattern he reads as capitulation and an exhaustion of selling pressure. Gordon's more cautious stance suggests investors should watch whether the rebound holds as volatility continues to normalize. The next test is whether the VIX keeps declining and equities confirm the bottom, or whether renewed volatility invalidates Lee's signal.