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By The Numbers


Current DateTime: 03:08:32 09 Feb 2012
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ABOUT BY THE NUMBERS

Our market specialists dig deep into Wall Street’s daily metrics, crunching the numbers to help you become smarter about the market so that you can make better investment decisions. By The Numbers details the daily drama, the winners and losers, how the day stacks up historically, and how the numbers can offer a glimpse of the future.
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Current DateTime: 03:08:32 09 Feb 2012
LinksList Documentid: 30111251

Watch the VIX this Week

Published: Monday, 18 May 2009 | 9:18 AM ET
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By: Ariel Nelson
Director of Market Data & Content Services

The VIX [VIX  Loading...      ()   ], a.k.a. the investor fear gauge, hit an intraday low of 30.59 on Friday.   The Chicago Board Options Exchange (CBOE) volatility index has not closed below 30 since September 12, 2008, and if history is an indicator, a crossover below the 30 mark is a bullish signal.

The VIX shows the market's expectations for 30-day volatility of options on the S&P 500 [SPX  Loading...      ()   ].  Values above 30 are generally considered periods of high volatility due to fear and uncertainty while values below 20 are considered calmer times in the market. 

The chart below shows how the VIX rose as the S&P 500 fell in the past 2 years.  However, the VIX is now getting very close to that 30 marker.  Historically, the S&P has seen an average of 3% and 6% gains respectively over the 3 and 6 months that follow a crossover below 30.

VIX During Past 2+ Years

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