The CBOE NASDAQ Market Volatility is a measure of implied volatility based on the prices of a basket of NASDAQ 100 Index options with 30 days to expiration.
Interpretation: When the VXN rises, it indicates that traders expect the NASDAQ 100 Index to become more volatile. The higher the VXN, the higher the fear, which, according to market contrarians, is considered a buy signal. A falling VXN indicates that traders in the options market expect the NASDAQ 100 Index to trade more quietly. In the same respect, the lower the VXN, the lower the fear, indicating a more complacent market.