Stocks Drop as Volatility Spikes

The video discusses the current state of market volatility, focusing on the VIX futures spread and its implications. It highlights the abnormal market conditions, with a focus on the backwardation of the VIX curve, indicating heightened short-term risks. The discussion includes an analysis of how these conditions have deviated from the norm and what this means for traders and the market's future behavior.

What does the current trading behavior of the front month contract suggest about market sentiment?

In what way does the current market differ from a normal market regarding the VIX futures contracts?