No, No, No...No More Foreplay

Although the VIX ETF products (UVXY VXX, e.g.) are now pushing short-term oversold into the market indices surging today, the actual VIX is not yet oversold. This is a consequence of the VIX bounce yesterday which likely lured in quite a few equity bears looking for a surprise holiday week uptick in volatility. 

Instead, it is same ole same ole, with the VIX getting pounded today.

At this point, I would favor a complete wipeout in the VIX to single digits in order to achieve a more attractive buy signal, if at all, rather than bottom-fishing this type of teasing action. There has been some talk about the VIX putting in a major base bottom, but I would not rule out a bloodbath finale of the VIX getting crushed first to completely destroy retail and institutional hedgers alike--At least that would set up a more classic trade than the current foreplay.