So, short interest is at an all time high and the VIX is just about average. "If the current levels of the VIX are any guide, we still have a lot of pain to go through before that bottom is reached." What do the crisis indicators show? Let's throw in a bank and broker default risk chart just for fun. Conclusion: We are headed much lower. I wouldn't go long until we see fear in the VIX. Right now we are hearing a lot of fear but not seeing it in market movements. Short interest is an indicator of where we are headed. Target - Dow 10,000 before year end. The Fed sponsored rally is over, they are out of bullets.