Short Term Trading Weekend Lounge: 21-23 Dec, page-91

US markets extremely oversold well beyond what would be considered reasonable on the basis of the FED increasing rates by 25 basis points. Indicating 2 possible rises in 2019 which would historically take it to a value still below the long term mean. Mandelbrot in his book " The (mis) behaviour of Markets" expounds on the frequency of massive volatility in stock markets  often thousands of times greater than predicted by classical mathematics. That is for the frequency not the size. His Fractal Theory explanation is right on the money right now. He would say that expect continued very high volatility for a bit longer, but would also say, it is quite probable it could be in the opposite direction.