The VIX closed below its 200-day moving average yesterday - an action that will light up...

|By:, SA News Editor

The VIX closed below its 200-day moving average yesterday - an action that will light up technical analysis-minded traders who latch on to such things as a confirmaton of a trend reversal. However, MarketWatch's Jay Pestrichelli isn't too impressed by the milestone, as he takes some of the air out of the theory that the instrument is a true indicator of "market fear" by noting it's actually a reflection of yesterday's news and greed. "While the VIX has some impact on the probability models of tomorrow, it is more of a reflection on how we got to where we are now." VIX +6.1% today.