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The market has been moving in a way that almost feels rhythmic — sharp drops followed by aggressive rips and fast recoveries. These V-shaped rebounds have become a common theme, and that backdrop matters.
When you see the market snap back with that kind of force, it sets the tone for how you approach the next setup.
So when things got volatile and the indexes started swinging hard, I wasn’t surprised. That environment influenced how I reacted when the indicators started flashing something unusual.
When Extreme Fear Becomes the Setup
I had 6,200 in mind as my target for the S&P 500. That was the level I wanted to really go all in, the level I was waiting for. But we never got there.
Instead, something else happened — the Fear & Greed Index dropped below 10. That’s extreme fear territory, and when it hits that level, you pay attention. The VIX was elevated too, well above 20, and historically when you see the beginning of a V-shaped move, it often continues.
There can be choppiness in the middle, and we were probably approaching that, but the broader pattern usually holds. That gave me even more confidence that the downside, while still possible, wasn’t the whole story.
So I made the call to buy even without hitting my price target. I knew I might be early. I knew there could be another 5% of pain. But the confluence of signals was too strong to ignore.
Trusting the Process When It Matters Most
This wasn’t about abandoning discipline. It was about knowing when to adapt. Part of that comes from understanding how sentiment drives behavior. In moments like these, everyone tries to be rational, but markets don’t move on pure logic. You can’t strictly trade rationally when the whole landscape is being driven by emotion, fear and overreactions.
I saw indicators historically associated with strong forward returns. I saw extreme fear readings that rarely last long. I saw the type of price action that often precedes extended recoveries.
And I decided that was enough for me.
It paid off. Markets bounced from being down nearly 10% on the year to pushing into positive territory and back to all-time highs. Maybe there was luck involved, but preparation sets the stage for luck to matter.
The real takeaway isn’t to ditch your plan every time the market moves fast. It’s to stay flexible enough to recognize when the setup changes. When fear hits an extreme, when volatility spikes, when the tape starts to form the beginning of a V — you don’t ignore that.
You lean in.
Graham Lindman
Graham Lindman Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. My No. 1 Daily setup and What Happens When You Hold Till the Close
I’ve been showing everyone how to target 50% a day in less than an hour…
Every morning using my No. 1 daily setup.
However, if you hold the same trade until the close, that 50% target quickly transforms into what could be a 100% payout!
