Below is a chart of the VIX with the actual VIX removed. What is left is the 10 day moving average and you can see that is’s showing “normal volatility” at this point and there is a lot more room to run to the upside. The reason I like this chart is it smooths out some of the erratic nature of this chart and you get a clear picture of what is really going on.
With a deal looming on the Fiscal Cliff you know something is going to happen soon. Futures are flat right now.