thats exactly what we needed - a spike to 29. Most people are looking to see it hit 30+ but keep in mind... most traders are looking for a minimum of 30 to mark a short-term bottom for the market. Part of the reason that the VIX is "low" can be attributed to the fact that the 20-day historical volatility on the SPX is relatively low, currently at 19.13. For example, that when the VIX peaked in March, the historical volatility on the SPX was 23.10, substantially above current levels. So, when observing the VIX, the "fear factor" is determined by the degree in which SPX implied volatilities, as measured by the VIX, are priced above the actual (historical) volatility of the SPX. This marked the top. We'll churn here for a while and then pop later in the day.
Investors Intelligence Sentiment spiking to levels worse than the October 25th, 2002 lows . . . Only 27.4% Bulls as of July 9th. And 47.x% Bears as of July 9th.
I still think they will take them up hard soon...let's see, investing is all about probable spots and risk management.
We have not seen the bottom IMHO! VIX needs to be a little closer 30 for any kind of meaningful bounce.