GOOD VIX Work! But...

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be careful not to read too much into one indicator. There is no infallable indicator no matter how it precisely predict the last market bottom.

Just to offer two counter points here: 1) VIX can spike up again from here and break the down trend line you drew connecting early Oct '08 and last Nov '08. 2) even if VIX trending down from here, price can still drift lower before it spike to the downside, at which time VIX will react viloently to the upside.

You see, your analysis of 2003 bottom works only in the hindsight. You won't know how it will play out in real time...