
Bill's VIX:VXV ratio is "off the charts"; note the bearish divergence in supporting stochastics:

I have drawn in two necklines for VIX double top confirmation. If I was to make a guesstimate on what will happen I expect a gap up in the market (gap down in the VIX) which is faded during the first part of the day. This fade pushes the VIX towards 72-75. Late afternoon buying brings the indices back to yesterday's close and creates a second spike high in the VIX. On Friday it will be the reverse situation, market will gap lower / VIX will gap higher. Markets will rally in strength all Friday / VIX will fall producing a bearish cover candlestick to complete the second peak of its double top. From there it will be modest market gains on a declining VIX until it breaks 47 when a completed bottom is in place.

Now all that is needed is for the markets to follow this precise plan - should be a piece of cake in this calm environment!
Sidenote: Nasdaq NewLows has far surpassed the January lows, but yesterday's selling and lower close to Friday didn't produce a swing back to Friday's highs.

Other sidenote: TraderMike highlighted yesterday's low volume, which I see as part an exhaustion of sellers, but also a lack of conviction amongst shorts to open new positions.
Dr. Declan Fallon, Senior Market Technician, Zignals.com the free stock alerts, market alerts and stock charts website