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Hi Carlton,
Let's look at it this way, a steadily rising $VIX tends to equal a declining confidence about the stability of the market. In this case, we are looking directly at $OEX and its correlation to $VIX. The inverse can also be said about a declining $VIX roughly being equivalent to an increasing confidence in market activity. You may want to read the following article from the CBOE that refers to many commonly asked questions about the VIX. I hope this helps.
Let's look at it this way, a steadily rising $VIX tends to equal a declining confidence about the stability of the market. In this case, we are looking directly at $OEX and its correlation to $VIX. The inverse can also be said about a declining $VIX roughly being equivalent to an increasing confidence in market activity. You may want to read the following article from the CBOE that refers to many commonly asked questions about the VIX. I hope this helps.
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