Conversation

Trader Brian Jones

A High VIX means that traders are worried that the market is going to fall further so they are buying protection. As the S&P falls the VIX will go higher but there are situation when that changes after the market has fallen too much like in 2008 and in other circumstances.

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Stocks N Specks

Replying to @MasterBJones and @traderbjones

Still learning here. What’s the significance of the VIX in regard to SPY?

2:33 AM · Jan 27, 2022Twitter Web App

Stocks N Specks

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Which other indices work in tandem?

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There's a saying "when the VIX is high you buy" and "when the VIX is low look out below." You can see from the chart that when it approaches 40 it tends to reverse and vice versa at 15.