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Wall Street's 'fear gauge' is doing something unusual. What it means

CNBC·Oliver Renick·about 1 month ago
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A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., April 23, 2026. Jeenah Moon | Reuters Something interesting is happening in the options market. The S&P 500 touched record highs Thursday morning, but the Cboe Volatility Index (VIX) remained stuck near 20 and is up from five days ago, when the S&P traded about 100 points lower. In other words, stocks went up and so did the market's so-called fear gauge. Stock Chart Icon Stock chart icon Cboe Volatility Index, 1 month The VIX and S&P do move in tandem about 20% of the time, but if a "VIX-up/stocks-up" environment lingers for more than a few days it means a few things are likely happening under the surface of the market. One explanation is simply that investors are doubtful of new highs in stocks and hedging against risks like the Iran war and crude oil. If that's the case, traders should be wary of near-term pullbacks in the index as realized volatility "catches up" to VIX.…

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