The CBOE Market Volatility Index or VIX represents a strategy indicator for some traders.
When it shows a high, it means volatility that permits heavy trading. Lower VIX can also mean activity doldrums with ensuing lesser trading.
Lower VIX readings provide further possibilities to some observers in the financial community of a recession. This happened in 2008. This observation brings up the question of poor market psychology again. ( See the Earl J Weinreb NewsHole® comments.)
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