The CBOE Volatility Index, commonly known as the VIX or the “fear gauge” of the stock market, has experienced a notable upswing recently, reaching levels not seen in over five months.
This surge in the VIX, which has breached the psychologically significant mark of 20, serves as a compelling indicator of growing apprehensions within financial markets.
The VIX, a pivotal gauge of expected volatility in the S&P 500 provided by CBOE Global Markets Inc., experienced a surge of almost 13% on Tuesday, and is currently poised for its third consecutive weekly advance.
This spike has followed a month of substantial volatility, with September witnessing a 30% increase in the VIX, its most robust performance since April 2022. Notably, this came after the VIX had reached its lowest point (12.68) since January 2020.
The fear index has now exceeded both its 50-day and 200-day moving averages. The latter in particular constitutes a breach of what had been a formidable resistance hurdle since March 2023.
Chart: VIX Index Rises Above Key Moving Averages
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Benzinga