VIX

The VIX, or Volatility Index, is published by the CBOE and measures the market's expectation of near-term volatility based on S&P 500 options pricing. Often called the "fear gauge," a rising VIX indicates that investors are nervous and expecting large price swings. A falling VIX suggests complacency and relative calm. Historically, VIX spikes above 30 have coincided with market sell-offs and panic — moments that contrarian investors often treat as buying opportunities. Conversely, extremely low VIX readings can signal overconfidence and potential vulnerability. The VIX is a core sentiment indicator for systematic traders who want to understand the emotional temperature of the market. At One-Signal, volatility data including the VIX is incorporated into our signal framework alongside the put/call ratio and sentiment surveys, helping us identify when fear or greed has pushed markets to extremes.