VIX Hits Almost 6 Year Lows, Complacency Replaces Fear

24/7 Wall St.

Stock Split ImageThe Volatility Index, AKA the VIX, just hit a 52-week low. Make that a multiyear low, all the way back to April of 2007. Is the “fear index” showing a market that is overly bought and ripe for a correction? It may just be signaling that we are in the midst of one major rally that can keep running and running. The move we are seeing is being confirmed by the iPath S&P 500 VIX ST Futures ETN (NYSEMKT: VXX). This exchange-traded note is also at a 52-week low.

Some market observers may start to say that this alone may be marking some seriously overbought territory for the broad stock market. 2013 has been a great year for stocks with record inflows for the first two months of the year. The problem is that as the VIX gets lower and lower it signals extreme complacency. The good news for the bulls…

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