The issue is not to do with market up or down but the volatility of it. Volatility originates from uncertainty. EU debt crisis is a big reason for all the uncertainty out there.

Greece will leave Euro, Greece will not leave Euro.

Spain will get bail out, Spain will not get bail out.

Italy will join Spain to get bail out, or Italy will not get bail out.

All these questions. People start to get tired of them. Eventually, someone bound to say that to hell with these countries and the Euro mess, let's dump all their debt and move on with our lives.

When that happens, VIX will go down even further even if market drops.