StressSignalWhat searchers usually want
They want to know whether the VIX curve is in contango or backwardation today, not just a textbook definition.
StressSignal Risk Desk
Use the VIX/VIX3M proxy to see whether near-term volatility is priced above medium-term volatility, then cross-check the signal before treating it as market stress.
VIX/VIX3M proxy
Updated June 1, 2026
Term state
Above 1.00 points to short-end inversion.
Spot VIX
1D -0.55
Risk state
Percentile is based on the available 1Y sample.
Current read
Short-term volatility is below the 3-month view. This is the calmer default state, but it should still be checked against the VIX level and equity-volatility breadth.
They want to know whether the VIX curve is in contango or backwardation today, not just a textbook definition.
This page turns the curve into a risk-reading workflow: term proxy first, VIX level second, financial stress confirmation last.
Backwardation does not automatically predict the next market direction. It says near-term volatility is expensive relative to the medium-term view.
A value near or above 1.00 means short-term volatility is close to or above the 3-month view.
Use the VIX level as context, not as the only stress signal.
How to read it
The clean reading sequence is curve shape first, magnitude second, confirmation third.
The short end is below longer volatility. This is the more normal state and often means the market is not paying up for immediate protection.
The curve has lost its cushion. This can happen before events, policy risk, earnings concentration, or fast index repricing.
Short-term volatility is above the medium-term view. That is a stress flag, but it still needs confirmation from breadth and financial conditions.