looks to me like we now have strong evidence for a top:
highs-lows bear divergence
hi-vol grinding
key is in techs, if they don't make a statement to upside we're pulling back (or sinking depending on thrust of move).
The VIX may be of better use if looked from a dynamic perspective rather than a static one.
In other words, relativity comes into play when looking at it over the short-term because obviously over the long-term it hasn't indicated what it's known to....
So it's the short-term fluctuations...
The Growth Stock Report has an intersting take on Technical Analysis in which they see themselvs as translating market action and discerning "what's important" from "what's not" - who knows
http://www.thegrowthstockreport.com/blog.htm
The Growth Stock Report Blog mentions trendlines all the time and with out a doubt that should be observed and traded!
http://www.thegrowthstockreport.com/blog.htm
I know institutional trading firms pay attention to fib-levels so I do. I've seen significant price action around them long enough to stay on the look out for them: http://priceandpattern.blogspot.com/