Traders must keep a watch on vix downtrend
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At about 18.2, the Cboe Volatility index (VIX), an option-derived measure of expected S&P 500 volatility, sits comfortably below its long-run average of 19.5. The VIX is known as Wall
Street's fear gauge because it tends to drift lower as the S&P 500 rises, spiking usually when sharp stock market falls see traders rushing to buy protection through options. Note
how on the chart below, provided by Duality Research, a VIX around the 15 level marked February's record high as investors were so relaxed they felt little need to hedge against a
market retreat.