My Investing Muse

The Cboe Volatility Index (VIX) is a real-time index that represents the market’s expectations for the relative strength of near-term price changes of the S&P 500 index (SPX).  This is also known as the "Fear Index" in relationship to S&P 500.  Thus,  ‌ $Cboe Volatility Index(VIX)$   ‌usually move in the opposite direction against the theS&P500 index ‌ $S&P 500(.SPX)$   ‌. When there is more fear (VIX) ie uptrend, the S&P500 would usually move downtrend and vice versa. There are typically 2 price actions involving VIX: 1.   VIX Spike  - this is characterised by a sudden move up and pull back quickly. This usually implies short term panic.  For some traders, this can be interpreted as a buying signal as this is usually shorter-term (lasting a few days). 2.   VIX Swell  - this is a slow but gradual move up while the market rallies.  However, VIX and S&P500 moving together in the same direction is a warning whic...