i remain bearish this market, but unsure as to what evidence there is presently that vix will go higher. yes, it is consolidating, saw a spinning top to-day. obviously, vix will increase as market tanks...just not sure that charts reflect this, at present
Ummm, because you are comparing apples to oranges! The "old" VIX (circa 1987) is NOT the same measurement of today. The CBOE has a nice FAQ on their website about the differences. IIRC - the "max" from 2000 - 2002" is like 45. The "daily avg." today is well above 60 - BY THE NEW MEASUREMENT. Aside from that, the VIX is kind of BS - it doesn't so much measure volatility as it does options trading in the S&P...which is NOT necessarily "market volatility" as measured by volume or price changes in equites - IMHO. -gastropod
Lots of people are underwriting their positions after this big upmove. That sounds pretty smart. Only fools get burned twice by the same flame.
VIX is still high because the dust on this crash has not settled yet. 30 year bond yield is also pricing in prolonged bear market: http://stockcharts.com/h-sc/ui?s=$TYX&p=W&yr=5&mn=0&dy=0&id=p65817863685 Those that are expecting a V shaped stock market recovery are going to be disappointed and I think thatâs what the VIX is indicating as well.