Volatility Index (VIX)

• Vix from 1986
• Vix (recent)
• S&P/Vix Ratio ROC
• S&P/Vix Ratio (long term)

VIX, What is it?

The VIX takes the weighted average of implied volatility for the Standard and Poor's 100 Index (OEX calls and puts) and measures the volatility of the market. A low VIX indicates trader confidence. A high Vix the opposite. Dividing the S&P 500 by the Vix (ratio) gives the confidence level in relation to the market. The higher the ratio the higher the confidence. As always, when sentiments go to extremes, it could be time to pay attention.

Source: www.InvestmentTools.com