Why a divergence in the S&P 500 and the VIX may be a problem for stocks

The S&P 500 and the Cboe volatility index tend to trend in opposite directions since investors have less to worry about when the stock market rallies and vice versa. However, in recent days, this well-choreographed relationship has been thrown off balance with the VIX hovering significantly above its 52-week lows even as the large-cap index set records for a third day in a row.