The VIX as an indicator

Another indicator that traders use is the VIX. You can read the details about the VIX here.

The VIX is a measure of market volatility. The saying goes "When the VIX is high, you buy, when the VIX is low, you go." "High" on the VIX is usually considered above 30. Low is below 20.

In general, if the VIX is above 30 the market is in panic mode and this indicates an opportunity to get in when prices are low.

If the VIX is below 20, it indicates that the market is complacent and that a sell-off may be happening soon.

Despite the recent sell off, we still aren't in a panic mode yet. I would wait until the VIX moves above 30 before getting too aggressive in this market.