get ready for another rally the $VIX says one is coming look at the chart from around Oct 12/09 to now its either you see it or you don't.
You've got to remember that the $VIX will also "price in" and "adjust" to the new levels of fear. Fear measurements back in March will be completely valued differently than they will now. The market would react differently to certain news now, that it would for example in March.
But the base break is important to see and I'm glad you've noticed it. Ideal conditions for me would be a clean break of the $20 support here, a brief step up in the market for me opening up PUT plays for the bounce back to the DJI 10,500 and the VIX forming a new resistance at around $20.
Now, on the other hand, supposing a July like rally into the new year, this strategy would go to shit. I'm not predicting that kind of rally will happen, but in no way can I control the markets if it does! I can tell you that typically when something consolidates this long in a sideways trend it tends to break either direction hard. Got the betters panties all up in a wad ready to throw their strings.