On a day to day basis the volatility skew is not a reliable signal for the direction of equities. What is reliable though is the trend and the charts below indicate that equities have further to fall within this current downtrend.
Skew VS SPX
The following chart is the skew (with no reference to the vix) versus the SPX. Notice the downtrending channel the skew is in.
Skew Vix Divergence VS SPX
A rather interesting similarity has formed with the current trend versus that of summer 2008 preceding the September / October slide.
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Volatility Skew Indicates Further Selling Pressure- Macro Story.
Images: Flickr (licence