As the macroeconomic outlook is beginning to weaken, investors are seeing signs of market volatility and related exchange traded notes (ETNs) can be a way to play investor sentiment in either direction.

Trader sentiment is growing more pessimistic and the Chicago Board Options Exchange Volatility Index (VIX) is past the 30 level, which forecasts a sharp drop from stocks, according to Yahoo! Finance.

Readings of 30 or higher usually translates into high volatility and a bearish sign for the Standard & Poor’s 500 index. Another typical bearish sign for the S&P is the growth of VIX spot number and VIX futures spread, which is above a 3.20 premium.

The VIX may keep gaining as investors start taking profits from the recent rally that had stocks shoot up 35% higher from March lows.

Troubling signs for the market are cropping up, with the World Bank issuing a lower outlook for most world’s economies, commodities stocks are weakening and the Dow transports falling about 4%. With second quarter reports on the horizon, investors are fearful of potential low results and a national unemployment rate that is close to 10%.

  • iPath S&P 500 VIX Short-Term Futures ETN (VXX): down 8.1% in the last three months