For a second there, I thought we might do it, as the market rallied quite hard yesterday.

The more I look at the structure of IV, the more I am convinced we are heading lower from here

When the VIX broke through 42% Friday morning, prior to Ben Bernanke's uneventful speech, I heard several of my students discuss how it had hit a 'triple top', as if high option volatility has any form of technical analysis that can be applied.

There are heavy expectations ahead of Ben Bernanke's speech from Jackson Hole. We can see this in the way option implied volatility has risen over the last few days. But just what type of move is the market expecting?

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With all of the market volatility over the last few weeks, one would have thought the market would be FLYING around left and right. It hasn't.

In terms of volatility relative to movement in the SPX, at its peak, yesterday's movement in the SPX volatility was the worst we have seen.

One of the founding principles of the VIX futures is that the structure of them comes from SPX options.

What does an overpriced VIX really mean? If one looks at historical volatility relative to implied volatility, the VIX is almost always to high.

The VIX got hammered yesterday and the SPX is now trading at a higher level than it was before the S&P downgrade. So…all is well…maybe.

There were a few things I liked about the rally yesterday, but there was one thing I really didn't like.

SPX is starting to eerily resemble some of the price action from 2008 but less severe.