$VIX Ratio Low

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.