Volatility Index Below 30 For First Time Since September

The Chicago Board Options Exchange Volatility Index, Wall Street's favorite measure of investor concern, pierced the psychological 30 level Tuesday for the first time in eight months, indicating the perceived need for portfolio insurance is diminishing.

The so-called VIX fell 0.73 percent to 30.02 after notching a session low of 29.95, its lowest level since Sept. 19, 2008.

The index sank to 30.24 on Monday, its lowest close since Sept. 12, 2008.

"After a very volatile period in the final months of 2007 and early 2008, the broader economic outlook has stabilized, which has resulted in lower levels of volatility in the equity market," said Frederic Ruffy, options strategist at Web information site WhatsTrading.com.

LEER MÁS