VIX Index Gains in Recent Sessions – Levels Still Within Usual Range

A noteworthy rise in the CBOE Volatility Index (VIX Index) has taken place over the past couple of weeks following a significant decline. The VIX, often referred to as the market's “fear gauge,” has seen an increase of 7.8% over the last 10 trading sessions. This upswing in market volatility reflects a changing sentiment among investors, which may point to a variety of market conditions and investor expectations for increases in volatility or large changes in market prices.

The VIX index closed out yesterday at $12.85, so the range is still within the usual region, but the uptick from May 24th's $11.93 is worth noting. From Friday 19th April, when the VIX hit $18.71, the month long decline that had seen the Index shed 35% now seems to have come to an end. This current value suggests that while the market has calmed significantly, recent sessions have induced more uncertainty or expected market fluctuations.

From a technical analysis perspective, the stochastic oscillator currently indicates that the VIX is in an overbought condition, which is to say its recent closing prices have been at the high end of its trading range. This implies that the market should prepare for a possible reversal or calming in the sessions ahead, as overbought conditions often lead to a pullback or a plateau in the index value.

Markets will continue to monitor volatility indicators like the VIX, as they provide insights into investor sentiment and potential future market moves.