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Where Might That VIX Go?

Posted on October 13, 2008

So the rally is 2 hours old, and of course it's time to start determining whether that was THE Bottom, whether this pop lasts, blah blah blah.So hey, let me throw another unknowable question out there, how low does the VIX go here before it settles.Well, we're not going back to the normal 20's any time soon, I'll underwrite that.A logical guess , or at least the one I am going with, is that we dip below the magical 10 Day MA line. The old rule says that 10% below is a sell signal (for the market). My anecdotal observation is that using this indicator for market buys and sells does not work ...

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overbought , oversold , vix