2. As can be seen from the chart that VIX index is breaking down one major moving average and thus we can expect it to fall to more realistic levels which means that one can go long in the equity in present global melt down scenario.
3. Now as we see that a major moving average is being broken and thus technically as per the chart the next major moving average is in offing.
4. Thus it is advisable to have a look on a CBOE volatility index before going long in equity. Also if you are trading in commodity than CRB Index provides the necessary clue.