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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: wlheatmoon who wrote (2613)	8/14/2000 11:10:34 PM
From: John Pitera	Read Replies (1) \| Respond to of 33421

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