When the dynamic of the index can not explain weirdness, it is an indicator. When the VIX and the market are up together, it makes me seek short-term protection, especially when it is a day other than Monday.
Keep in mind, I very much believe in the 'trading dynamic' post. And this set up has not prevented me from entering new positions (ie WFC and IBM as it was consolidating these past few days).
The high frequency trader in me believes there will be a brief consolidation here, and I plan on covering this protection very quickly. (Probably around 1315.) The decline can be intra-day or multi-day, but I am not expecting a decline below 1300 or so.
(PS: Originally, I confused today for Tuesday, but its really Wednesday. Thank you anonymous commenter :)