The CBOE Volatility Index, popularly known as the VIX, settled below the 14 mark for the first time in more than three years.

What Happened: The VIX is one of the most commonly used measures of market sentiment and it is often used by traders as a tool for assessing risk. The VIX tracks the S&P options market, where traders bet on the future direction of the index.

A rising VIX suggests professional traders are betting on wild swings in the S&P 50 Index. On the contrary, a falling VIX reflects their expectations of relatively smaller moves and consequently a calmer market.

The ProShares Trust VIX Mid-Term Futures ETF (BATS:VIXM), an exchange-traded fund that tracks the S&P 500 VIX Mid-Term Futures Index, which measures the returns of a portfolio of monthly VIX futures contracts, ended Tuesday's session at $22.59, down 3.67%, according to Benzinga Pro data. This marked its lowest level since March 2020.

Source: Benzinga Pro

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Analyst's Take: The VIX remained above the 14 levels for about three years and two months. Carson Group analyst Ryan Detrick said the previous longest streak the VIX was above the "14" mark was five, plus, years that ended on Aug. 13, 2012.

He noted that after that sub-14 print in 2012, the S&P 500 Index gained 18.3% over the next year.

The VIX has since then moved back above the 14 levels and traded up 2.08% at 14.25.

Tuesday's move below 14 suggests market participants are less concerned about the future direction of the market.

Despite the uncertainties surrounding interest rates and recession, key market gauges have remained resilient in recent sessions. The S&P 500 Index ended Tuesday's session at 4.283.85, its highest closing since Aug. 16, 2022.

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