The most common measure of expected stock swings, the CBOE Volatility Index, or VIX, has moved higher even as the S&P 500 has risen in January. In an unusual occurrence, the VIX has moved in the same direction as the S&P 500 on half of trading days in January.
The VIX has risen 0.5 percent this year and closed Friday at 11.10, while the S&P has jumped 7.45 percent, according to The Wall Street Journal’s Market Data Group. The gauge, which is based on S&P 500 options prices, tends to rise when investors are jittery and stock markets are declining, which may make the recent situation unsustainable.
The VIX remains low relative to its historical average, which is close to 20. But the move higher is notable after its calmest year in history, in which there seemed to be no end in sight for placid markets.
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