S&P 500 could be down more than 2% vix only climbed 7.3% to 18.86.

NEW YORK (MarketWatch) — The Chicago Board Options Exchange Market Volatility Index , a measure of implied volatility in the S&P 500 index , on climbed 7.3% to 18.86. The stock market’s Wednesday selloff, though, would typically see the VIX rising above 20, a level not breached since late July, said Randy Frederick, managing director of active trading and derivatives at Charles Schwab & Co. “It’s very rare that the S&P 500 could be down more than 2% and not have classic panic selling, which is typically reflected in the VIX,” said Frederick. “The VIX is not always the greatest predictor of markets, but it’s surprising how subdued it is,” said Frederick, who that added the gauge’s limited rise could signal “a short-live pullback” for equities. “If the S&P 500 finishes above 1,400, that would support that theory.”