$VIX Bottom Here?
Is the market at a top?
While identifying tops is more difficult than finding bottoms, to answer the question we look at the $VIX and apply the Coppock Indicator on a monthly chart. Given the negative correlation between S&P-500 (“Market”) and $VIX, a low of the monthly $VIX points to a market top.
As of February 28, 2013: The monthly $VIX printed a higher negative value compared with its previous value in January. And this is a technical indication of a low for the $VIX.
(Note: Several times in the past, the monthly $VIX went lower again, invalidating/delaying the current picture. It’s part of the imperfect game.)