The S&P 500 and the Cboe volatility index — the so-called fear index — tend to trend in opposite directions since investors have less to worry about when the stock market rallies, and vice versa. However, in recent days, this well-choreographed relationship has been thrown off balance, with the VIX hovering significantly above its 52-week lows even as the large-cap index continues to carve out new records. The VIX is a measure of the market’s expectation for volatility over the next 30 days and is calculated from the implied volatilities of S&P 500 index options. A low reading indicates a calm market while a higher number suggests elevated uncertainty. Dana Lyons, a partner J. Lyons Fund Management Inc., thinks this divergence deserves closer scrutiny given that such disconnects have previously heralded tough times ahead for stocks.via