In simple terms, a rising Vix signals growing uncertainty and wider expected market swings, while a falling index points to easing anxiety, improving confidence, and stabilising sentiment. To be sure, in the December-February months, the Vix has scaled down from 22-23 levels in 2021 to the current level of around 10—indicating overall levels of volatility have reduced even if swings around the extant levels continue. While some analysts look at the index, others keep an eye on the swings.
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