Cboe Volatility Index below 20

The Cboe Volatility Index settled below 20 Friday for the first time since the pandemic rout took hold a year ago.

The VIX, as it’s better known, closed at 19.97, the lowest since Feb. 21, 2020 when coronavirus-related fears were beginning to grip investors. The S&P 500 Index slumped more than 11% in the final week of February.

The volatility measure peaked on March 18 at 85.47 and has tumbled 77% since then. Friday’s drop of 6% came as the S&P rose 0.5%.

“This is a positive divergence. Stocks churning but VIX falling. This suggests that ‘fear’ is receding from the market,” Tom Lee, co-founder and head of research at Fundstrat Global Advisors, wrote in a note.