VIX at 45.45... isn't that dangerous level?

CathyG

I thought I read somewhere that when the VIX goes over 41(?), it's a clear sign of serious upcoming downfalls. Is that right?

scott

VIX firmly over 30 is not good; 50 igets certainly more serious. The worst level in 2008 was 79ish.

CathyG

Reply to @scott: Thanks, Scott! Do you know if the VIX jump SUDDENLY from 30's to 70's in crash of 2008, or was it more gradual like it is now?

scott

Fairly large spike, around August 2008, then it remained elevated "above 30" until around the Spring/Summer of 2009.

http://finance.yahoo.com/echarts?s=^VIX+Interactive#chart2:symbol=^vix;range=5y;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=off;source=undefined

CathyG

Reply to @scott: Thanks for the chart link, Scott! I changed the dates to just viewing October 2008. Looks like VIX went from 40 to 80 in less than 1 month! I wasn't following the market then (ignorant bliss) - but that whole period must have been awful for all of you who saw the daily changes.