Potential Impact Of New Low In VIX

The NVDA thrust that has propelled SPX, ES, and SPY to new ATHs has crushed Cash VIX to a low of 11.52 in today's pre-market session. The last time VIX was this low was in late November 2019 just before the Pandemic panic emerged that closed the US economy. 

Lest we think that the absolute value of VIX at 11.52 in and of itself is a reason to be bearish equities, the Nov. 26, 2019 low at 11.42 preceded 9 weeks of relatively low VIX readings between 12 and 16 prior to an explosive up move in VIX (decline in SPX) that hit a spike high at 85.72 in March 2020. 

This time certainly does not have to mimic the 2019-2020 timeframe, but that said, a 4-1/2 low in VIX is a warning, not necessarily a "sell everything" signal... 

If VIX climbs ABOVE YESTERDAY'S high at 12.81, then the bulls will have something to worry about... Last is 12.24 off of a 4-1/2 year low at 11.52...