The VIX .....yes I have seen this, hear are a few comments
from Peter E about it:
Let's begin this update with a discussion of the of the VIX, a measurement
of option volatility that is somewhat complicated in its calculation, but
it is available to us throughout the day and we have a relatively long
history of data for comparative purposes. Today, the VIX moved to a low of
20.17, the lowest low in over eight months. Readings this low tend to be
bearish, but let's review the history of the last year so to acquaint you
with its performance. The last time it was this low was December 3rd,
1999. From the high registered that day, the Dow declined almost 300
points intra-day over the next four days, but then went on to rally 700
points to its major top on January 14th of this year. Before that, the
VIX reached a low below 20.17 on November 19th and 22, 1999. Again, it
marked a short-term top lasting seven market days, and the Dow Industrials
declined 253 points intra-day over that period of time. There were still
two months to go before the Dow's all time high, however. Before that ,
October 11th , 1999 which led to an immediate decline of 743 Dow points
from intra-day high print to intra-day low print. Before that, July 19th,
1999 also marked an exact top before a Dow decline of 703 points intra-day.
As you can see, readings on the VIX as low as today's readings tend to be
bearish.
of course the VIX can go down in the 16-17 area before
negative fall out transpires |
