“Fear Index” Climbing But Remain Below Panic level

U.S. stocks took it on the chin for a second day Thursday, leading the Chicago Board Option Exchange’s Volatility Index, or VIX — known colloquially if not somewhat misleadingly as the “fear index” — to its biggest one-day jump since the last big equity pullback in June.

The VIX VIX 12.96% rose 1.53 points to 14.57, an 11.7% jump from Wednesday — the largest daily jump since a rise of than 23% jump on June 20.

OK, so a big move, but one that sees the index rising from a historically low level. And a low VIX can be taken as a sign of investor complacency, just as a high reading can mark investor fear. Strategists put the historic norm for the index at around 20.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu