VIX is inversely related with SPY, although not by an exact measure. It is the "fear" gauge or implied volatility of 30 day puts. Basically, if you are not familiar with VIX when it goes up, SPY comes down.

1.) Trend lines were used from spike peaks down against candlestick bodies.
2.) When the 20 day EMA pierced the trend line, a new spike occurred, and a new trend line was drawn from that point to the top of the spike.
3.) A trend line was added across the top, along the bodies of the peak candlesticks to estimate peak height.

This is only a scenario, other things can happen, but you can make your own individual decisions. If you are interested in timing for a possible VIX spike, that would be the week of 12/7/12 per this chart.



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