RED VIX ALERT

The VIX is now down 7% to 10.59 or about 11.5% below its 10 day SMA. It generally does not get more oversold than this although there have been times (not many) when it has gotten to 15% below. I would not count on 15% below so if you are buying please make sure to use tight stops. The 2 day RSI on the SPY is now up to 93- so the indicators are aligned.