The VIX ended up BIG today settling above 21%. However I think the real story is not just how high VIX is, but how NOT high volatility has been. The spread is through the roof and I am not sure the lat time I saw something like this. It looks like the fiscal cliff at the end of 2013 on steroids
Well, that vol sell off was fun, its probably over, have fun if you dumped VIX futures today.
One common understanding about vol and the S&P 500 is that tops in vol often lead bottoms in SPX. Well if today was a top in vol, which it might not have been, then we still probably have not seen the bottom in SPX. Take a look at this chart of VVIX returns and SPX returns. What I want you to notice is how well the two track eachother with VVIX being a slight leading indicator. If we saw the top in VVIX today (possible) then there may be a day or two of SPX drop in front of us more.