The VIX Breaking Down

For months, the market's "fear index" has been running at historically high levels.  However, on Thursday it gapped down and broke below a support level that had held up on multiple previous tests (see the last candle on the chart).  What this means is that traders are less concerned now with the possibility of a sharp downward (or upward) move than they have been over the past 5 months.

Investors are regaining confidence that the market won't fall out from under them.  We should continue to see a lot of buying on dips and a lot of people holding their current positions as opposed to selling.

Chart courtesy of StockCharts.com