I still have a position in the ETF, VXX, which is set up to track the VIX.
I should have sold it as soon as I saw the problem, but like a car wreck, I could not look away from the carnage this trading vehicle is doing. If the market goes into a sustained downtrend (rather than up or choppy), this divergence may change, but we'll see.
Since I purchased VXX, the VIX is basically flat, maybe down 1%, while the VXX is down over 20%.
Here is a longer-term view of the VXX compared to the action of the VIX.
http://www.etftalk.com/images/forum/vxx1.gif
Buyer beware. My recommendation would be to short this sucker. If it goes down while the VIX moves sideways, can you imagine what will happen when the VIX moves down? Well, you can see above what happens. The problem is, it is tough to find shares to short.