Deep Store

The ratio of VVIX (volatility of VIX) to VIX itself. Flagged by macro strategists as one of the most important charts for identifying regime changes during volatility shocks — specifically, for identifying when a VIX spike is *ending*.

Why it matters: When VVIX is high relative to VIX, market makers are pricing heavy uncertainty about VIX itself — the classic "fragile calm" setup where a small shock could trigger an outsized spike. More practically: a sharp bottom in the VVIX/VIX ratio historically signals that VIX has peaked for the episode and risk assets are set to bounce. It doesn't necessarily mean the all-clear for the next 6 months — it means VIX hedges are being unwound, so risk-on positioning can resume tactically. It can mark the end of a short-lived wobble or the end of a bigger episode.

How to read it: Watch for sharp local bottoms, not absolute levels. A falling ratio during a VIX spike means VIX is rising faster than VVIX — when that reverses (VVIX starts falling faster than VIX, or VIX starts falling), the ratio bottoms and the risk event is likely ending. Typical range is 3-6.

Caveats: This is a *signal extraction* indicator — the raw level means less than the shape (local extremes and slope changes). Needs the trend/regime visualization work to be really actionable; a number in isolation isn't as useful as a chart showing local minima. A single bottoming signal isn't always the end of the episode; use in combination with VIX9D/VIX term structure and overall price action.