The February volatility has surfaced, but the VIX, while up nearly 18%, has not spiked as per my comments. It is interesting to see China described as the "catalyst" for this set of circumstances. The REcaptitulator believes China is again experimenting to see just how the partial differential equation describing the sensitivity of U.S. markets to Chinese markets works. This is a dangerous game of "chicken", and I am not sure who will blink.
Whether this redefines the nature of risk premiums in today's compressed world remains to be seen.