When we go back to the 1994 bottom and draw our horizontal line, we can see a massive base that is in the process of completing. The stock market crash of 2008-2009 already had clear indications it was ready to bottom as the VIX started to turn back in late 2008 already. Will fear strike the majority of investors again? I sure think it will as the VIX is a contrarian indicator, which most investors or traders ignore.
At this time the VIX represents investor complacency, matched only a few times since 1994. Even the expert wave analysts did not use the VIX in late 2008, because if they did, they would not have come up with that silly wave 1 in Primary degree.
Steven Jon Kaplan, one of the smartest contrarians around, sure called it perfectly in late 2008 as his forecast was for the biggest bull market since the depression. He is now calling for a big bear market that should send the VIX much higher in the coming years. Eventually the VIX could hit the extreme of the $90 price level again. It will never do this all at once, as there are trading limits in place to give markets a pause. With algorithms running amok in the financial world, you never know if these safeguards will actually work. For the VIX itself, there are no trading limits.