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Prior to a market top, what would one expect to see in a VIX reading?

Prior to a market top, what would one expect to see in a VIX reading?

A.

Increasing VIX levels, as more investors are adding protective measures

B.

An overbought VIX level, given an increase in long term S&P futures contracts.

C.

Generally low VIX levels, as there is often complacency among traders prior to tops

D.

An oversold VIX level, given a decrease in long term S&P futures contracts.

CMT Association CMT-Level-II Summary

  • Vendor: CMT Association
  • Product: CMT-Level-II
  • Update on: Jul 30, 2025
  • Questions: 262
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