Tuesday marks the fifth anniversary of the all-time high for the S&P 500 when the index closed at 1,565.15. Since that time, volatility has dominated equity markets, with three drawdowns in excess of 15% (56.8%, 19.4% and 16%). In light of increased volatility, the VIX has become even more of a directional indicator for equities. From 1990 (when the CBOE revised its VIX methodology) through Oct. 5, 2007, the weekly correlation between the VIX and the S&P 500 was -0.67. Since then, the inverse relationship has grown even more - with a correlation of -0.73, a 9% increase in the (negative) correlation between the two indexes.