Many traders were looking for a big spike in the VIX volatility index above 30 before calling a short-term bottom recently.  While the VIX did spike, it didn't quite get above 30 during the mid-July lows.  Now that we've come off of those lows, the VIX has moved back below 20.  Interestingly, even though the S&P 500 is just about where it was in mid-March, the VIX is dramatically lower, indicating much less fear in the market now versus then. 

For those looking for a low point in the VIX to call a short-term top in the market, just above the 16 level has been a point in this market where the S&P has reversed course and headed lower.

click to enlarge

• Bear Market In Its Final Stages?  »
• GSEs Into Conservatorship: Can Housing Stabilize Now?  »
• The Great Dollar Pump of 2008: A Doomed Central Bank Intervention  »
• A Closer Look at the Treasury's GSE Preferred Stock Purchase Plan  »
• What Will Fannie / Freddie Mean for Monday?  »

Bespoke Investment Group

• Bios & more articles
• Bespoke's blog: Think B.I.G.
• Market Research: Bespoke Premium
• Bespoke Money Management
• Bespoke Institutional
• Contact Bespoke