|
VIX and direction of US Market
VIX and the direction of the market
VIX is just an indicator of how the overall market will perform and where will the upturn or downturn is.
LOW VIX means that market is very bullish and indication of a sell off.
HIGH VIX means that market is very bearish and indication of a buy up.
Market News has the ability to drive the the VIX to extreme low or high. It happened before and will happened again.
From investopedia
The ticker symbol for the Chicago Board Options Exchange (CBOE) Volatility Index, which shows the market's expectation of 30-day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options. This volatility is meant to be forward looking and is calculated from both calls and puts. The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge".
I will furnish with more information in my next post.
As of now, VIX is on the LOW.
Please feel free to add or comment of what I have mentioned.
|