The Volatility Index (VIX) is to measure the market
volatilities in the next 30 natural days. Usually it moves reversely with the
general market. When the market moves up, the VIX shrinks, likewise.
The stock market plunged last Friday 9/20/2013. The S&P
500 index dropped 12 points, or 0.72%. However, the VIX slightly decreased by 0.3%.
It indicates that the market did not show any fear.
Since the market just made historical
record high the previous day, a lot of investors, especially those who missed the
boat, would treat the market drop as a buying opportunity.
We are going to see if the market overreacted to the
negative news.
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