The chart has a yellow line overlay showing how TLT has historically reacted to the VIX and the point of interest is that TLT has never resolved back to the VIX baseline (like April 2011). This is a stark graphic view of the potential bond collapse that is contributing to market nervousness.
Of course things could turn around in an instant but the odds are looking increasingly with the bears.
Here's one doomsayer's comment.
And, just for reference here's a look at the SPY/TLT pair study supporting the bears once more.
Those of you that have the daily Market Rewind subscription can replicate these pair studies.
