Outside the Box: History suggests you should buy the dip if stocks falter at this level

It’s been quiet on Wall Street, suspiciously quiet.

Investor fear — as measured by the CBOE Volatility Index VIX, -6.57% — is slowly drifting lower. In fact, the VIX just dropped below 15 (which has been historically significant support) for the first time since October. (More about that in a moment.)

Real time (or actual) volatility has dropped even more than implied by the VIX. A simple but accurate way to gauge real or actual volatility is to measure the difference between the S&P 500’s SPX, +0.64% daily high and low over a period of time.

Last December, the S&P 500 moved as much as 5.16% a day, a 121-point difference between the day’s high and low.

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