2024 $VIX Volatility Hits 5-Year Low, S&P 500 on Track for Record Low Drawdown

The $VIX volatility index in 2024 is averaging 13.7, on track for the lowest since 2017, with the historical average at 19.5. The S&P 500's maximum drawdown of -1.7% so far this year would be the smallest in history if it ended today, with 1995 holding the record at -2.5%. This low volatility is unusual, as the average year since 1928 has a -16% drawdown. Traders note that the market is experiencing a period of low volatility, with the S&P 500 ETF (SPY) trading in its narrowest intraday range since the day after Thanksgiving.