The fact that the VIX is elevated while the market is rising, imo, is very bullish for the markets. It means the market is climbing the wall-of-worry. (We must worry when the VIX is at very depressed levels. That would indicate complacency.)
The VIX still suggests a credit fear, and that is a legitimate fear with out a definitive plan out of Europe.
The only time I worry about the vix:
1. very depressed levels
2. If on particular days the Vix is up while the SP500 is up. (This could either be due to VIX index re-pricing or someone knows something and are protecting themselves. The VIX up/SP500 up only lasts for a day or two until the market reacts. The most severe I ever observed it, was the week Lehman went under. It was up a few days in a row with the market, scared me so much that I sold all my positions except market shorts. That weekend we got the start of a US driven credit freeze.)
The above indicates everyone is already 'anticipating' a credit freeze. (As I highlighted months before, everyone was play a credit freeze before the actual credit freeze.) But we already know, we will not get one, hence it is a wall-of-wary the market can climb.
Fear takes time to get washed out. It took a year to flush out the fear from 2009.
As the market re-captures the its 360SMA trend, it may consolidate before running.
Will look to add short-term SPY protection if the SP500 approaches 1260-1270.