<<<Once again, we overreacted to the upside relative to the fear in the options markets.>>>
Yep, and like most "good" indicators it has duplicity about it, either:
1) fear can come down or
2) market can come down
And if you develop the split personality needed to interpret it, the market will send you to the loony farm by making the deviation longer and larger than you ever thought possible.
Fun huh?
Todd