The VIX held above 11 most of the day yesterday but closed with a thud at the low for the day of 10.73!
The last time the VIX was below 11 was on Feb 23, 2007 when it closed at 10.58. On Jan 24, 2007, the VIX closed at 9.89. The lowest price I saw on a 14-year chart was Dec 22, 1993 when the VIX was at 9.31.
Even though 10.73 seems low, we can go lower. I won't be surprised if we go below 10. The VIX has done it before. Never say the market can't do something. The market will move to frustrate the greatest number of participants.
The greatest number of participants are Long I think so they will not be frustrated with a Vix drop lower. While VIX can go lower, question is in which time frame.
Looking at the longer term chart, it wouldn’t surprise me if the VIX stays in this very low range for several years. A big market drop could easily change that though. Forecasts.org (see http://forecasts.org/stpoor.htm) is projecting a market decline starting in the fall, so we might not have to wait years to see the VIX have a good pop to the upside.