The Volatility Index ($VIX) is often times referred to as the fear index and fear is a necessary component of bear markets. So the recent surge in the VIX should not be taken lightly. We can and do see the VIX spike quickly during bull markets – only to settle down shortly thereafter. But a VIX above 20 is a common denominator of all bear markets. Such markets require high levels of fear and the VIX is the tool I use to measure it. Below is a monthly analysis of the VIX this century with the S&P 500 performance shown beeneath it: