What is market volatility telling us about the state of US equities

What is market volatility telling us about the state of US equities? As expected, the VIX has dropped significantly as the market has stabilized. During the 5% correction earlier this month, VIX shot up above 20 - the long-term average of the widely followed volatility gauge. It was only the third time in the last year the index breached the 20 barrier. Now that the S&P 500 has regained most of its lost ground, VIX is back down below 14, or just below the 50-day moving average. This would imply equities traders are complacent with the equities markets for the time being. However, the VVIX, the volatility of the VIX itself, is still hovering above the 50-day average level. It could mean VIX traders aren't yet certain the recent bout of volatility is fully past - and is worth keeping an eye on.