The VIX index measures the implied volatility of S&P 500 put and call options. The VIX reached an 85.47 high in 2020 as the global pandemic gripped the stock market, causing it to plunge. The index has made lower highs since the 2020 peak as stocks have been on an almost one-way bullish path.
The current VIX level, below 12.50, implies stocks will continue to rally. However, the most significant downdrafts in stocks tend to occur when the market least expects a correction.
