The VIX (aka the “Fear Index”) dropped below 16 for the first time since before the pandemic. Judging from past performance, it may stay low for a while. Historically, when the VIX dropped below 16, it took an average of 84 days (roughly 3 months) before the VIX popped above 20, and nearly a year before we saw the VIX pop above 25.

 

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Cherry Picks is written in collaboration with Michael Rechenthin, PhD, Head of Data Science at tastytrade; James Blakeway, CEO of Quiet Foundation, a data science-driven subsidiary of tastytrade; and John Kicklighter, Chief Strategist at DailyFx with an expertise in fundamental analysis and market themes.