The above chart shows the SP500 index (above) and the VIX indicator along with its 10 day moving average (below). The VIX indicator is used here in its mean reversion mode, and one can see how every time the VIX diverges too much away from its 10 day moving average, it tends to move in the opposite direction soon afterwards, and the SP500 stock index moves in the opposite direction that the VIX indicator moves.
