Volatility, as measured by the CBOE VIX index VIX, +0.15%  after spiking higher in October, dropped back to year’s lows and at around 13 is well below historical averages. 

The exact “V” shaped recovery in both the VIX and S&P 500 seems unnatural. Previous pullbacks took much longer to recover from.

Jeffrey Saut, chief investment strategist at Raymond James, says the reasons to expect higher volatility are simple: historically, after long periods of low volatility, markets experience higher volatility. Others think it is the Fed’s exit from QE that will contribute to higher volatility. But whatever the reason, most people on Wall Street agree that volatility is going to be higher in the months to come, which means we are likely to see more pullbacks. Click HERE or Image for next Chart