Chart of the Day - Friday, June 12th, 2020
June 12, 2020
Today’s Chart of the Day was shared on Twitter by Nautilus Research (@NautilusCap). It's a chart of the Volatility Index ($VIX) over the past 20 years, along with a 1-day rate of change indicator in blue. The VIX surged 47.95% yesterday - marking its largest daily % gain in over two years. The red circles highlight all the times that the VIX has spiked more than 45% in a day for the first time in three months. The table shows the forward returns of the VIX and the S&P 500 after each of the prior nine occurrences. The VIX has always been lower three-months after these volatility spikes. Six months later, the S&P 500 was higher 76% of the time for an average gain of 6.46%.