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To: Al Serrao who wrote (8987)	8/16/2000 5:32:21 PM
From: Gottfried	Respond to of 9427

Al, this conventional chart of VIX vs SP500 [or any other index you specify] may help. I'm staring at it now. :) finance.yahoo.com Gottfried

To: Al Serrao who wrote (8987)	8/16/2000 5:47:55 PM
From: Dave Shares	Read Replies (1) \| Respond to of 9427

Al, The VIX confuses me too. But I have read that the VIX is based on OEX option trading, and OEX options are more thinly traded than they have been historically, so one must wonder how good the VIX is as a market barometer, although one must also wonder about whether the upside is limited with the VIX at such a low level. While I have not checked Put/Call ratios on index options over the past couple of days, there had been enough put buying going on to continue to fuel a rally from last week. I think if the VIX broke 20 and the put/call ratio turned lower, I would see that as a truer warning signal than looking just at the VIX. For what its worth, David

To: Al Serrao who wrote (8987)	8/16/2000 8:45:50 PM
From: Tommy Dorsey	Respond to of 9427

Vix measures volatility. As the market rises volatility decreases and when it declines volatility increases. with the vix at low levels it spells trouble for market. It is one thing but important. There is much to keep track of and vix should be in the mix. It will not rise if the market rallies it will further decline. It is at lows now. Like charts themselve, there is much more to it than just looking at a P&f chart like most think. t