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[ATTACH=full]101670[/ATTACH]

In practical terms this is what I mean:

The 'high' in VIX is (approximately) 80.
There were a number of days almost 80, but lower, yet the market was lower.
We will not see a higher reading than that this time round (that is my bet).

We could however see lower lows in the US markets (stocks) with lower VIX prices.
Therefore, the VIX 'lags' in that it's not useful in defining the bottom of the market. We had exactly this same issue in 2008.

It is a useful measure in that as volatility declines there are greater opportunities for a bounce or a bottoming process, of which bounces are part and parcel. The VIX does provide that information.

jog on
duc

[QUOTE="ducati916, post: 1063741, member: 2975"] [ATTACH=full]101670[/ATTACH] In practical terms this is what I mean: The 'high' in VIX is (approximately) 80. There were a number of days almost 80, but lower, yet the market was lower. We will not see a higher reading than that this time round (that is my bet). We could however see lower lows in the US markets (stocks) with lower VIX prices. Therefore, the VIX 'lags' in that it's not useful in defining the bottom of the market. We had exactly this same issue in 2008. It is a useful measure in that as volatility declines there are greater opportunities for a bounce or a bottoming process, of which bounces are part and parcel. The VIX does provide that information. jog on duc [/QUOTE]

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