The VIX Closes Below 10

Yesterday, the Volatility Index (VIX) closed below 10. Historically, this is a very low reading for the index. This was its lowest close in 24 years.

Since 1990, the first year of data in my file, the VIX has closed below 10 just ten times. The VIX has been as low as 9.56 this morning.

I have a slightly heterodox view on the VIX. You’ll often hear the VIX discussed on the financial news as if it’s the market’s heart rate. It’s not.

In fact, the VIX is largely tied to what the market is doing. When the market is up, volatility drops. When the market falls, volatility rises.

Posted by on May 9th, 2017 at 12:26 pm

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