S&P 500 Index
Long

The ratio of SPX:VIX at unusual level

541
Note the ratio of SPX:VIX spikes prior to market corrections because VIX typically spikes just prior to downward trend in SPX (weekly ratio w/ log scale). Also note the SPX:VIX ratio has historically (nearly) always outpaced SPX. However, we are currently in a very unusual situation in which the ratio is significantly below SPX... VIX is at a historic high compared to SPX. Not sure what to make of this... sign of even larger correction to come or will SPX:VIX ratio revert to historic trend greater than SPX which means big gains for SPX, big decrease in VIX)? What do you think?

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