Option traders rely on the VIX for a number of reasons. One of those reasons is to help them spot tops and bottoms in the market. When the market hits a bottom, the VIX is usually trading at an extreme. For example, on March 17th the VIX blew through 33 while the SPX found a bottom at 1275. On January 22nd the VIX blew through 33 again while the SPX again found a bottom at 1275. In both examples the market began to rally afterward.

So what is missing now? The market continues to head downward while the VIX trades around 23. Don't get me wrong, a 23 VIX does allow you to sell some pretty good premium which is what we like to do, but if you're trying to time the bottom, a blow off in the VIX sure would help in doing just that.
Successful Trading!
thinkorswim, Inc. does not solicit or recommend any form of trading in the individual stocks (or their derivatives) mentioned above. Please do careful, independent research before investing any money as well as weigh the possible consequences on your particular financial situation before doing so. The risk of loss may be substantial.

Neither Investools nor its educational subsidiaries nor any of their respective officers, personnel, representatives, agents or independent contractors are, in such capacities, licensed financial advisers, registered investment advisers or registered broker-dealers. Neither Investools nor such educational subsidiaries provide investment or financial advice or make investment recommendations, nor are they in the business of transacting trades, nor do they direct client commodity accounts or give commodity trading advice tailored to any particular client's situation. Nothing contained in this communication constitutes a solicitation, recommendation, promotion, endorsement or offer by Investools, or others described above, of any particular security, transaction or investment.