Coiled Volatility Suggests Possible Rocky Month Ahead

Just a day before the CBOE VIX or Volatility index exploded higher in late July, I wrote about the monstrous rally the market had in June and July, recovering all of its May losses and repeatedly chronicling fresh highs, during which time the VIX had coiled, settling around the 11-12 level, amid investor complacency. With the market having made fresh highs recently, the VIX had once again moved back into the 13-14 area over the last week, and now a storm could be brewing all over again.