The VIX has so far made a nice decline that still looks very corrective and may have hit a low point this morning. Patterns are starting to overlap again which is pretty normal in diagonal wave structures. Either way, the VIX bull party is far from finished, as we should see another record high develop in the next 3-5 weeks. Any impending wave 3-4 in Minor degree is going to give us a problem as a triangle could develop. A triangle inside a diagonal wave structure can be a real nightmare to sort out so we have to give it time to work through that part of the VIX correction.
One more low could happen but that should be cleaned up by the end of the week.
Commercial hedgers are already building short positions while the trend chasers are still net long. Once any Minor degree 5 waves are starting to complete then I will turn very bullish on stocks. This may still take a month or so with the exact time always being a challenge. March is a very popular month for turnings along with October as they reflect the yearly cycles.
Investors may stuff more money into funds in January to take advantage of any taxes they may want to avoid. Its when they stop, that the markets can crash again.