After reading a recent comment I decided to take a closer look at the Vix on a different timeframe than I normally view it. I don’t use the ADX indicator (seen below chart) very much these days, but in more bullish environments it was a staple. How I would use it in conjunction with momentum stocks is after a stock went on a large run-up (such as the one the Vix did in late October, I would wait for the chart to smooth out/consolidate and allow the ADX (black line) to fall underneath the +di/-di lines. The longer it stayed under those red/green lines the better as it was consolidating for it’s next move.
Many times the next large move would be in the direction of the previous move signaled when the ADX line crosses up through the green/red di lines. It’s really looking like this is going to be the case here which would be very bearish for the overall markets. Right now the Vix continues to get rejected every time it goes outside it’s upper bollinger band, but every time it takes a crack at it gives itself a percentage chance of plowing higher. Just one more chart to keep you eye on in the search for a tradable bottom.