Reading through the news this morning, I found it funny that the market affixes a price tag to fear. Basically, this is "With increased activity in options trading, particularly with put options (which let investors profit from falling prices), options prices rose in response to the volatile market movements, thereby boosting the VIX.
It seems that it's typical to see the VIX move counter to the S&P 500. When the market is jittery and falling, the VIX tends to rise. And by the same token, when the stock market seems to be chugging along and few investors are seeking out the "insurance" that options can sometimes offer, the VIX drops and fear is deemed to be low (Reference)."
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