Daily Options Report

I'm not the biggest proponent of VIX charting, but it is worth noting that we're right at the 50 day MA. There's no natural supply or demand at a chart point like you might have in a stock as there's no particular reason that someone who bought at 25 volatility has any desire to sell it there. If he bought it and the SPX volatility itself perked up, his trading probably did the hedging for him.

But that being said, there are psychological factors and a bit of self-fulfilling prophecy to think about too, so it's worth at least noting.

I prefer looking at that 10 day SMA rule, that is note the action when the VIX gets 10% above or below it's 10 day SMA. If the bull move remains in tact, I would expect an overbought VIX to be a good long entry point. But not there yet, we need to get over 26.