Implied volatility is indicating another possible volatility expansion.

The VIX index is a calculation designed to produce a measure of a constant 30-day expected volatility of the U.S. stock market, derived from real-time, mid-quote prices of S&P 500® Index (SPX) call and put options.

The VIX had drifted below its long-term average of around 20, but as you can see in the chart, it’s printed a lower high.

As the VIX remains elevated and in an uptrend as defined as higher lows and higher highs, it suggests the market expects stock prices to be more volatile.