In this post two weeks ago I noted that $VVIX moved up all day while $SPX was up. I wondered if it had bottomed after trending down since late January. I also compared its behavior the last 7 or 8 months to what it did the first several months of the 2007-08 bear. I also talked about how $VVIX behaved in 2007-08 after bottoming (see blue shaded area).

$VVIX Current Daily Chart

$VVIX 2007-08 Daily Chart

Well, as you can see it did bottom the day I made that post (see vertical dotted red line) . And the move it has made since then is very similar to the move it made after bottoming in 2007-08. It moved up, made a higher low, then went up to the upper band (20,1.5), and pulled back. It appears to be making a second higher low, but that is not confirmed yet. In 2008, after making that second higher low (see vertical dotted blue line), it moved up for another 4 days in tandem with $SPX, which began its decline to new lows on the 5th day while $VVIX continued higher.

In 2007-08, $VVIX took 12 days to get to the upper band. It took 10 days this time. There is also some similarity in the way it became uncorrelated then and now. So we shall see. There is no guarantee about anything moving forward from today. But it has been interesting to see the fractal play out so far.