- The VIX volatility index has risen eight times above 20 in the last 34 months. It is currently at 21.24.
- Past spikes in the VIX above 20 have presented superb entry-points to go long the ProShares Short VIX Short-Term Futures ETF.
- The SVXY (Inverse of the near-month future contracts on the VIX volatility index) has formed a 4-year channel with clearly-demarcated highs and lows, and has now touched its extreme lows.
- Severe selling days are often clustered at the end of a large down move and mark the moment when prices have fallen low enough to attract new buyers.
- To follow this trade in time, see Updates at end of article.