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Comparing the VIX Index level to its average price range is helpful in identifying whether VIX is “high” or “low” and can provide indications of what the market is predicting about future prices. Generally, a rising VIX indicates Market weakness and a declining VIX indicates the Market is strengthening. When the Coronavirus began accelerating the Market declined and the VIX Index climbed to a high of 85.47. The VIX has been at higher levels then average since the Coronavirus. The VIX Index is also referred as the Fear Index. The VIX Index will rise because of news events, economic events, during earnings season and during political events, such as the Presidential Election.

The market found support and is now moving higher again. It looks as if it wants to get back to the all-time that the Nasdaq 100 EFT hit at 303.50 on September 2nd before the sell-off. With all that is happening in our country it is surprising that the markets are showing so much continued strength. Could the strength be due to the renewed hope for an additional stimulus package?