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The CBOE Skew Index is meant to signal when investors are more concerned over a tail risk event(black swan), unexpected risk events. Given that, usually investors fail to be accurate at their worries and predictions, as markets continued to grind higher following extreme readings in skew index historically.
The point is, after printing an extreme reading in the SKEW index, then falling back to a low reading, here is where traders get caught in a move lower, which makes sense, as a lower reading in the SKEW hints markets complacency, which is usually a warning signal. Therefore, I differ in interpreting the SKEW index reading.