Volatility Index Signals Potential Stock Market Bottom Ahead

The CBOE Volatility Index, a popular gauge of stock market uncertainty, is signaling a potential low point in the S&P 500.

Futures tied to the volatility index show more near-term uncertainty than longer-term.

This "backwardation" pattern typically coincides with bottoms in the stock market.

The volatility index was at post-pandemic lows in September, indicating bullish sentiment.

Recently, geopolitical tensions, hawkish Fed policy, and bond volatility have increased uncertainty.