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It was red across the board on Tuesday as stocks dropped on fears of slowing economic growth. But after looking at the relatively temperate move in the VIX, often called Wall Street's fear gauge, trader Jon Najarian believes the downturn may be short lived.
On average there are 256 trading days in a year, so when the VIX is at 16 -- the square root of 256 -- the market is predicting a 1% move in either direction. While the VIX did climb as high as 21.94 during Tuesday's session, it should have been in the mid-40s to match the S&P's more than 3% drop.
This means that bullish sentiment might outweigh bearish sentiment, so traders are betting the market might turn around rather than continue to fall.
CNBC's Vincent Caruso contributed.