By Jeff Clark in Growth Stock Wire:

The Volatility Index is pointing to another 1,000-point move.

The Volatility Index (aka the "VIX") is best used as a fear barometer. A rising VIX shows increasing fear among investors. It's commonly associated with declining stock prices. A falling VIX, on the other hand, indicates investors are less fearful and more willing to take risks. It often leads to rising stock prices.

The last time we looked at the volatility index, it was on the verge of breaking down through major support on the chart. We surmised that if Wall Street's fear barometer dropped below 39, it would kick off a 1,000-point rally in the Dow Jones Industrial Average.

The VIX did indeed break down, and the Dow - which was trading around 7,600 at the time - rallied as high as 8,800.

Today, the VIX is giving us another signal. This time, it's going in the other direction. Take a look...

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