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A larger view of (2).

How about Apr/May of 2001 shown at (3). VIX started its thing. We got into the 40’s again. This is when everybody thought we had a “V” bottom from the bubble bust and the market rallied – OK, so it didn’t last long, but VIX was telling us that downtrend had changed.

A larger view of (3).

I will not be glib about (4). The tragedy of Sept, 2001 changed everything – our lives, our sense of security and our force of character. Needless to say, VIX was almost to 60! It certainly heralded a turn in the market and we had a 40 – 47% rally, depending on which index you were watching.

A larger view of (4).

And finally (5). The VIX has been running above 36 for the better part of 3 weeks here and we “may” be able to look back at Jul 24 at “a” bottom, if not “the” bottom. However, VIX indicated a turn in the markets and that certainly did happen.