Let's go back 15 months on the Volatility Index (the VIX). To do so, we posted a 15 month VIX chart below.

While the VIX has been dropping currently, the stock market has been good. (Remember that the stock market goes in the opposite direction of the VIX.)

Now, look at the 15 month view of the posted chart. Here is what you can observe:

1. The VIX hasn't hit its support line yet ... It had been moving down, but has not reached the support line yet.

2. From last August to now, there is a down sloping thick black line. Note that toward the end of this past June, the VIX penetrated that upper black resistance line to the upside and then pulled back. That was a breach of that resistance line and breaches are very often revisited later, so be very careful in the future.