you would think the fear would show up in the VIX much more so, kinda fishy. If you look at the previous selloff the VIX shot up, but based on present media/sentiment you would think the VIX should have spiked much higher.
Magnitude of market drop is nowhere near feb 27 (-YET-). Makes sense to me that vix has not spiked to a proportional level (-YET-). Chart you show pretty much tracks SDS IMHO.
yeah understandable, the question is why isn't the magnitude greater with so much fear present. another thing look at the correlation between a vix spike of the past few days, and how many times we breached the 50 day SMA, on the inx.x (spooz cash). We are actually holding above it and trading above it. The possibilities are, that institutions are waiting for options expiration to be over. Its very rare that when you do see a spike down of 26 points on the cash. Usually you have successive days where the 50 day SMA is breached and VIX spikes up accordingly. But if institutions are waiting, the fear will be priced in the longer they wait. Then you get into key timing points like FOMC, nonfarm payrolls, july 4th weekend.