This extremely high level of "fear" as measured by this index is showing us that we are close to a reversal as high RVX and VIX levels are historically unsustainable.
We are certainly in a bear market, but even in a bear market there are sporadic rallies to create lower highs. We are likely getting close to a short term bottom.
Below is a chart of the RVX showing that it has technically reached the target predicted by the Reverse Head and Shoulders pattern on the daily chart.
RVX Daily Chart:
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