VIX (Fear Index)

A measure of expected 30-day volatility based on S&P 500 option prices. Quantifies investor psychological anxiety.

Market Impact

RISING / BULLISH

Investor risk-off. Rapid spikes signal panic selling, but extreme highs can suggest a buying opportunity (selling climax).

FALLING / BEARISH

Investor optimism. Stable levels encourage carry trades and leveraged investment.

Context 2026

With AI-driven ultra-high-speed algorithmic trading now mainstream, VIX spikes tend to be short-lived ('spike transience'). Also heavily influenced by Zero-Day Options (0DTE).

OmniMetric Relevance

High. Used as an inverse correlation indicator to detect reversals in risk tolerance. Algorithms significantly lower the score when above 20.
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