The SPX to VIX ratio hasn't dropped much during this week's 237 point sell-off.
It remains at levels signaling stock market crashes, sitting at an extreme high 77.74 reading as of September 24th.
This ratio must decline below 35 for an intermediate-term sustainable Bull run. The S&P 500 must decline substantially, and the VIX must rise sharply for this to occur.
Just to give you an idea what we're talking about here, the S&P 500 would have to fall to 1,000, and the VIX simultaneously rise to 30 for the SPX to VIX ratio to fall to 33. That would be the equivalent of about an 1,100 point drop in the DJIA from today's 10,047 level.
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