By Keith Fitz-Gerald In a Money Morning commentary back in April, I suggested that while we’d hit a new market bottom, we almost certainly hadn’t hit the market bottom. So have we now? That’s tough to say, although three seemingly unrelated bits of data suggest the ultimate market bottom may be lower still, meaning investors aren’t out of the woods, yet. Let’s take a look: Since 1990, there have been 13 declines of 10% or more in the Standard & Poor’s 500 Index. And while each drop of this magnitude tends to precede a rally of six months or more, an ultimate market bottom typically hasn’t been established until we’ve seen an average reading of 36.3 in the Chicago Board Options Exchange Volatility Index - usually referred to as the VIX Index. Generally regarded as a ...

These days, you can’t escape the public outcry: traders want their VIX spike, and they want it now.

Not too long ago, the vicissitudes of the VIX used to be the privy of a fairly limited group of options traders – those that had ears to hear, as it were. Now, if you hear or read phrases like “bear market,” “20% decline,” and “market bottom,” odds are that the phrase “VIX spike” isn’t far behind. Nevermind whether the increased VIX coverage is appropriate or accurate or remotely helpful. Thanks, CNBC!

The net effect of the VIX’s coming of age is that everybody and his brother now “knows” that we won’t have a short-term tradeable market bottom until the VIX spikes up into the 30 range. Well, that claim may have held true in the recent past, but it …