The Market And The VIX -- All Clear? November 22, 2023

Locator: 46138INV.

Market today:

Going back as far as records are kept, the VIX has never been lower (not to be taken out of context):

 

From June 23, 2023: 

Locator: 45023INV.  

VIX: at lowest levels since January, 2020.

Wall Street's so-called "fear index" — the CBOE Volatility Index — fell to 12.73 Thursday, the lowest reading since January 2020.

As stocks snap a three-day losing streak and return to climbing the proverbial wall of worry, the VIX is signaling the most complacency in stocks since just prior to the pandemic.

It may not signal the all-clear, the low VIX reading does underscore the powerful rally U.S. large cap equities have mounted this year. While the rally was largely concentrated in growth tech names and mega cap stocks through May, cyclical sectors have joined the party since the last jobs report dropped in early June.

The VIX is perhaps most famous for its skyward spikes during periods of market turmoil. But sustained, lower readings are a hallmark of bull markets.