The SPX:VIX ratio dropped under 35 at the open and is currently printing 34.85. As long as the ratio remains under 35, a huge down day is on tap, and the markets are clearly in this mode. The ratio staying under 35 signals that the market bears will remain in control for an extended period forward. Keep watching.
Note Added 11/21/11 at 2:35 PM: At 2:10 PM, the SPX:VIX ratio poked back above 35, thus, you will see the markets recover. The bulls are fighting back trying to stop the drop under 35 that signals continuing gloom for markets. Last print is 35.67.
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