Tag: Vix index

VIX Continues to Drift Ever Lower The VIX continues to drift ever lower. This signals calm markets. Low readings reflect investor complacency. Expected volatility in the S&P 500 stays subdued. Traders interpret this as risk-on sentiment. What Is the VIX and How Does It Work The VIX, or CBOE Volatility Index, is known as the "fear gauge". It measures implied volatility from S&P 500 options prices. Calculations look 30 days ahead. High VIX shows fear and uncertainty. Low VIX indicates confidence and stability. Volatility Indicator as a Sentiment Indicator A drifting lower VIX displays bullish market sentiment. Investors feel safe buying equities. Safe-haven currencies like yen weaken. And volume price analysis (VPA) complements this—low volatility often aligns with steady uptrends and rising volume. Trading Implications Low VIX can precede tops if complacency peaks. Watch for sudden spikes as reversals. Quantum indicators on NinjaTrader or TradingView track VIX alongside equities. Anna Coulling's VPA approach uses it for intermarket context. Monitor the VIX drift carefully. It reveals sentiment shifts early....