“While I’m not bearish, I don’t see many upside motivations at these levels,” Donald Selkin, chief market strategist at National Securities, said in a Bloomberg article, citing the low level of the VIX as a sign the market was overbought.
Spending cuts or so-called sequestration talks are only two weeks away. The VIX spiked up to 23 ahead of the “fiscal cliff” talks. Still, the markets may not be that agitated this time around.
“We’re just continuing to desensitize,” Jim Paulsen, chief market strategist at Wells Capital Management, said in a CNBC article. “How many times are you going to sell out on some kind of armageddon story only to watch the darn thing go to new highs?”
For more information on the VIX, visit our VIX category.
Max Chen contributed to this article.