With the indexes seeing some declines, the VIX saw a moderate opening jump, but was maxed out by late morning. The VIX closed +6.9% @ 13.58. Equity bears need to see the VIX back in the 16s before there is any evidence the current equity wave from November has concluded.
So, almost 7% to start the week, but considering the index hourly charts, the VIX could just as easily close Tue/Wednesday -10%.
There seems no point in picking up VIX calls...yet. We could easily see a test of the Oct'2007 high of sp'1576.
The weekly chart will be key this spring. Any weekly close above the 200MA - currently in the 21s, will be the last warning to the equity bulls of a 'problem'.
A little more later on the indexes