On Monday, we showed Dick Arms’ chart correlating this level of VIX with subsequent market tops (The Disappearing Market).

Since then, Market Tech Reports noted the percentage drops associated with the VIX at this level — from 6-19%. Its noteworthy that each of these falls have been arrested and reversed by Fed actions involving QE or Operation Twist.


 click for larger chart

Source:  Market Tech Reports


Category: Technical Analysis

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5 Responses to “VIX Pullbacks”

  1. [...] If the low $VIX indicates a market top, then how big a pullback should we expect?  (Big Picture) [...]

  2. PeterR says:

    Cherry-picking the data to focus on the last couple of years may be misleading.

    Longer-term charts of SPX and VIX yield more mixed conclusions IMO (see new first chart at link above).

  3. [...] Vix pullbacks from these levels have ranged from 6 to 19% – each time the Fed stepped in with a program to counter.  (TBP) [...]

  4. 4whatitsworth says:

    It seems to me that everyone is in a nervous holding pattern. If we get some earnings misses watch out.

  5. ellwood2011 says:

    I don’t have a lot of time to spend on this but I don’t see any correlation at all in that chart btw VIX and market tops. The VIX at the time of market tops and the VIX at other times seem to be more or less the same.