CBOE Signals VIX “Death Cross”

While it may not be the traditional (50/200DMA) signal, CBOE’s Russell Rhoads points out that the so-called ‘fear index’ VIX has just signalled the first Death Cross since its apocalyptic warning in November 2007.

Yesterday (3/4) was the first time the 1 year average closing price for VIX crossed over the 5 year average since November 16, 2007.

With VIX having plunged to 2016 lows…

VIX Term Structure near its steeps..

VIX volatility at post-QE3 lows…

And VIX remaining decoupled from credit risk…

Complacency seems extreme by any measure.. The ‘death cross’ may be worth paying attention to once again as the ides of March strike.

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