The CBOE Volatility Index (VIX) broke 30 on Tuesday, hitting a session low of 28.35 for the first time since September 19, suggesting that the smart money are no longer panicked about stocks.
As recently as November, the VIX, which reflects options implied volatility of the S&P’s 500 index, was in record territory above 80, when the S&P 500 was nosediving. It then bounced between 40 and 50 from the start of the year until the end of March. Realized volatility has also been declining steadily since October.
Graph: Financial Content