VIX sinks to 10-year lows in sub-10.00 levels

The volatility index (VIX), also known as Wall Street’s ‘fear gauge’, has dropped to levels below the 10.00 mark for the first time since December 2006 earlier in the session, testing the 9.90 area just to regain the 10.00 neighbourhood soon afterwards.

The bearish note in the index remains well underpinned by the speculative community as well, with net shorts retreating from recent extreme positioning during the week ended on April 25 according to the latest CFTC report.