Dr. Phil Pearlman on Stocktwits.tv reported live from Davos, Switzerland on Friday at the World Economic Forum featuring Adam Warner, author of DailyOptionsReport.com and Options Volatility Trading (book). Also follow them on twitter @ppearlman, @agwarner for good info. Dr. Phil and Adam discussed the recent move in the $VIX (Volatility Index) and what it's implying about the underlying S&P 500 Index. Adam talks about the dynamics of implied volatility, the quick change in sentiment (VIX spiked 50% in a week (18-27), how the measure is still low relative to 2008 and if technical analysis is applicable. Adam noted that it was the biggest weekly move in the VIX since 2008. It is reflected in the chart below. Keep in mind the VIX hit 90 in 2008 and we are at 24! So there would need to be 5 black swans in a row to retest those levels, imo. Never know, anything can happen. They both gave market predictions as well.
Weekly VIX Chart from August 2008 (Courtesy of Stockcharts.com)
Also check out activity from the VIX options pit, VIX implied volatility and futures curve last week here.