VIX Rising: Short-Term Bottom in Place?

You be the judge: the chart below shows the VIX index versus the S&P 500 from 1995 through the present. Although the chart is slightly noisy, unusually high spikes in the VIX do often indicate at least a short-term bottom.

click to enlarge

Comments

[Pauly B]

I am not as optimistic with the shape the bond market is in right now along with projected negative future earnings for the majority of the market to call this a bottom. In addition the whole consumer issue is way up in the air and add to it the fact more mortgage resets are in the future. A few more shoes need to drop.