Buyers that stabilize VIX are long term in nature and after the market rallies beyond where those buyers accumulated shares, it has ALWAYS come back to retest and that's what we are doing here today.
The 75% retracement off of the high spike in vix to 50 is where we are pulling back to. There is a 2ndary spike in VIX to just over 28 in late September on the retest created another at the 199 level, or another 1.5% lower.
This is a PHENOMENA I have found thanks to the powerful charting here at TradingView.
Risk on long positions from here = 3 average ranges. Target 3 average true ranges. Use 11 day on a daily basis. Use the ATR indicator here to pull up the information.
3:44PM EST 11/13/2015 202.68 last SPY -2.16
Before the recent drop of the S&P 500 last week I had developed and backtested a strategy customized for the VIX which turned out to be highly reliable. It signaled a soon rising VIX (while the VIX appeared to be flat), which also meant the S&P 500 will fall lower. I sadly at first went against it and then the S&P 500 fell sharply and the VIX rose a lot. Next time I won't bet against this reliable VIX pattern, now that I experienced it live and not only in historic backtest data ...
Summary: The VIX seems to lead the S&P 500
I will be adding more money on sunday in order to start with $10,000