Volatility Index (VIX):
The VIX , or Volatility Index, measures market expectations for volatility in the S&P 500 over the next 30 days. Often called the “fear gauge,” it reflects investor sentiment and is widely used to assess the level of risk, fear, or stress in the stock market. Here’s a guide on how to read the VIX:
Below 20: Calm, low volatility, potential bullish outlook.
VIX 20-30: Rising uncertainty, moderate caution.
VIX Above 30: High volatility, market stress, potential bearish outlook.
VIX 20-30: Rising uncertainty, moderate caution.
VIX Above 30: High volatility, market stress, potential bearish outlook.
Understanding the VIX in context with market conditions can give you valuable insights into investor sentiment and potential market moves.
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