April 7 2009 8:32 AM EDT

Low volatility associated with recent S&P peaks

The VIX is religiously followed as a volatility indicator, but why not look at it directly? The %ATR(200) is 200-period Average True Range divided by point value of the market. This makes it clear when things are volatile and calm, normalized for price.

Volatility is nearing lows relative to the past few months. If the bear market resumes at some point, this indicator will reverse and start moving higher again.