Update on VIX Curve Inversion

August 06, 2014
By Knowledge Leaders Team in Uncategorized

A few weeks ago, we noted the relationship between an inverted VIX curve and declines in the S&P500 (see here).  Taking a longer-term view, we see that the last few years have been relatively quiet–characterized by few, intermittent inversions and minor pullbacks in the index.  A larger spike than we saw last week and/or a sustained inversion between prices of the VIX and the 3-month VIX would be symptomatic of a more meaningful correction:


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