While the CBOE SKEW Index has fallen back somewhat from highs last fall (see our comment here), it remains quite elevated-- both relative to history and on an absolute basis. Indeed, the further the index rises above 100, the higher the probability of 'outlier returns'. For a full description of the indicator's profile, see here. In spite of the rise in the SKEW, the VIX remains relatively subdued and the S&P continues to chug along.
