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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: Gypsy King who wrote (9948)	1/29/2002 8:13:38 PM
From: Steve Lee	Read Replies (1) \| Respond to of 19219

VIX hit a bottom on August 28, 2001. How the market reacted as VIX rose is typical of how it would react when VIX rises. Even ignoring trading after 9/10, there was still a steep drop from end of Aug into beginning of Sep. VIX depends on the level of complacency of options writers. Their waking up to the prospect of a market decline (and the subsequent rise in VIX) is simultaneous to the market decline actually taking place. Only when VIX tops out, is a substantial bottom in place. Maybe when VIX is at 40-45 the market will bottom.