This video shows how each successive low in the VIX:VXV ratio coincides with an important top shortly thereafter. The VIX measures 1-month implied volatility on S&P options, while VXV measures 3-month implied volatility. Today, the ratio spiked down to 0.79, a 3-year low. What this means is that the options market participants are complacent about short term implied volatility. Usually, complacency is a good recipe for a surprise.
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