$VIX

As you can see, VIX hit the correction band. Whenever it gets above it, it can extend all the way into the Danger Bells, Financial Storm, Real Crisis zone. That level for now is 28. The correction band works like a stress ceiling. Every time VIX gets above this band, the issue stops being just an equity correction and turns into either a systemic risk story or a policy/liquidity shock.
1997 Asian financial crisis
1998 Russia’s default
2001 Dot-com
2002 Post dot-com corporate confidence
2010 Eurozone debt crisis
2011 U.S. debt ceiling, U.S. credit downgrade
2017 North Korea tensions
2018 volmageddon
2020 COVID
2024 carry trade
2025 tariff war