Tom Bowley always reminds traders and investors to watch out when the VIX spikes above 20. I looked at what happened to the SPY since the GFC whenever the VIX moved up above 20 (with gusto) on a monthly basis and the SPY percentage change from that moment until the bottom.
The VIX shows clearly defined structures during specific episodes of the market since early 2020. The enormous VIX spike that accompanied the covid crash was followed by a high VIX regime that nevertheless showed a continuous down trend of lower highs. During the 2022/early '23 bear market VIX was perpetually trading above 20 until the structure droppped below...
