S&P500 / VIX Ratio & USD LIBOR

Hi Stationdealer,

Thank you for the articles that you have been posting..... it helps to understand what's going on, thanks.. Cheers.

Is the Bear Back?
May 20, 2010 | Leave a Comment
By: John Nyaradi
As global markets swooned today, the question of the hour has to be, Is the bear back?
Many indicators would answer yes to that question and in a moment well take a look at some of the major factors at work in todays volatile markets.
In spite of the possible return of the bear, we had a good day today at Wall Street Sector Selector as we remain in the Red Flag Flying mode, expecting lower prices ahead.
Our portfolios year to date stand as follows:
Sector Selector Option Master: +73.3%
Sector Selector Standard: +14.4%
Sector Selector 2X: -4.0%
Today was a total wipeout as a global stock market rout rolled around the world in response to the ongoing crisis in Europe and declining confidence worldwide. Todays drop in the Dow was its largest one day decline since March 5, 2009, just before the now infamous March lows and bigger than last weeks flash crash.
Overseas the bungling bureaucrats in Europe continued to struggle with the crisis of the plunging Euro and were once more unable to get in front of this problem in spite of reportedly significant central bank intervention.
At home, new jobless claims jumped unexpectedly, April leading economic indicators declined and there are growing signs of a worsening credit crunch as interbank lending rates continue to rise.
The S&P 500 is now in official correction territory, down -11% from recent highs, and more ominously, has now closed below its 200 Day Moving Average which is widely viewed as the demarcation line between bull and bear markets. If its unable to recover above the 200 Day Moving Average, even lower prices could be expected.
Friday is options expirations day which oftentimes brings even increased volatility and so it should be an interesting end to an interesting week.
Disclosure: VXX, EFZ, EEV, S&P Put Option

that Bob Prechter interview on cnbc in April when he got lambasted by those contributing idiot traders is very telling - he's been proved right yet again. We'll get the odd rally but the trend is down now - interesting times.

Prior to 2008, the VIX had only managed to nudge its way over 45 on three instances:

The 1998 Long-Term Capital Management crisis
The Russian Financial Crisis that preceded the LTCM debacle
The height of the dotcom crash, when WorldCom filed for bankruptcy
The table below summarizes the top ten pre-2008 VIX closing highs. Should it hold, todays VIX spike to 45.21 would put it at #3 all-time outside of the 2008 financial crisis.

Click here for the tablehttp://vixandmore.blogspot.com/

Ashraf

on March 27th i made this entry,

high RSI of nearly 70 on daily chart and the Bullish Percent Index (BPI) of over 90 % show similarity to the situation around january 14th (ca 86 %) ahead of the big sell off

a bullish sentiment has been purposely created by the institutionals to get the possibilty to get rid of their long positions

There were hints for this turmoil