VIX

The VIX, often called the "fear gauge," measures the expected volatility or future uncertainty of the stock market based on options prices. When investors expect bigger market swings—up or down—the VIX rises, indicating increased market fear or nervousness. Conversely, a low VIX suggests calmer market conditions. It's important to note that the VIX doesn't predict market direction but reflects how much traders think prices might fluctuate in the near term. Investors monitor the VIX to gauge overall market sentiment and potential risk levels, helping inform their investment decisions.