In the picture above- the VXO volatility index (OEX)- plotted against the SPX 500- also included in the VXO chart are bollinger bands between 2/3/4 standard deviations from the 50 SMA - and right now about as stretched as they get- our friend Fari calls these sigma channels- and I bet he would reach a similar conclusion-
Other recent times that the VXO was stretched - although not quite this far:
March 6- 09 SPX 693
July 8 -09 SPX 880
Sept 2- 09 SPX 995
Oct 2-09 SPX 1025
Oct 30- 09 SPX 1036
So here we go again - stretched at 4 standard deviations on the VXO - my best guess - BUY MORTIMER.