The below chart is a daily chart of the CBOE Volatility Index – also known as the VIX index.
The VIX is known as the market’s “fear gauge” measuring expected 30-day volatility for the S&P 500. The VIX can also be applied to expected volatility in the Nasdaq and QQQ ETF.
The black line is the actual index, while the red forecast line is an exogenous data composite that provides guidance as to what should be expected from the VIX over the coming months.
When the VIX is at a low reading, which it is right now, markets tend to drift higher. When the VIX begins to rise, markets tend to become more volatile and often “panic selling” occurs. Panic selling can eventually lead to market bottoms where opportunities exist for taking on long positions (buying) in an index like the S&P 500 and the Nasdaq.
A date is marked on the chart for when to look for a next peak in volatility.
Note: Mid-week ahead, an important video report will be posted showing what volatility means for the Nasdaq and QQQ during presidential mid-term years back to 1990. The report will reveal what to expect from QQQ into Spring 2027.