Others see the new low as a sign of complacency: the worst equity draw-downs often come when nobody expects them, and the low level of the VIX indicates limited demand for downside protection. The idea the VIX could be so low after witnessing such volatility over the last few months understandably seems unsettling to many investors. The VIX is a measure of expected, or implied, volatility of the S&P 500 index. That is why the low index volatility readings seem so unsettling. With the massive sector rotation, it would be unfair to say the current VIX level is related to a high degree of complacency.

Source: Forbes January 26, 2017 21:56 UTC