- Volatility Index is used to read market fear and investor behaviour, it takes data S&P500 of investor behaviour and investor pattern of mass buying or selling weighted average across companies.
- If there is massive sell offs in US Equities the Vix will increase indicating mass fear, the more bullish VIX is, the fear is active in the markets.
- Vix gives us an understanding on patterns and market repetition
- Seeing VIX and DXY Bullish can tell us that there is more fear in the market and Global Equities are weak.