
A key indicator to watch is the CBOE Volatility Index (VIX), often called the āfear index.ā The VIX measures expected volatility in the market over the next 30 days, based on options pricing in the S&P 500.
š When the VIX is high (for example above 25ā30), it signals fear, uncertainty, and unstable market conditions.
š When the VIX starts to decline and moves back toward lower levels (around 15ā20), it typically indicates that confidence is returning and the market is stabilizing.
In short:
High VIX = chaos and risk
Low VIX = calm and opportunity
Stay disciplined, manage your risk, and wait for the market to show clear signs of stability before making bigger moves.
