Equities rally again, led by small caps
Chris McKhann | email@example.com
Equity indexes rallied again ahead of the Federal Reserve's announcement today as the CBOE Volatility Index slipped modestly.
The S&P 500 gained 12.77 points, or 0.78 percent, to close at 1651.81. It was a few points off the session high, which came about an hour before the close. Resistance is now at 1670 and support at 1609, though those levels may not mean much come tomorrow afternoon.
The Nasdaq 100 advanced 24.83 points, or 0.84 percent, to finish at 2996.09. Resistance is at 3028 and support at 2925.
The Russell 2000 racked up 12.14 points, or 1.23 percent, to finish at 999.99. The small-cap index posted the biggest percentage gain among its peers. Resistance is now at 1008 and support at 968.
The VIX was down 0.19 points, or 1.13 percent, to finish at 16.61. The volatility index came off the day's lows about an hour before the close and was positive just below 17 in the early afternoon.
The VIX futures were lower all day. The June contracts, which settle tomorrow morning, lost 0.20 points to close at 16.75. The July futures ended the day at 17.65, down 0.15 points. That had the iPath S&P 500 VIX Short-Term Futures Note (VXX) down 1.47 percent to $20.08.
Video: What the VIX 'curve' shows
September 2, 2015
The CBOE's Russell Rhoads says nearer-term VIX futures are above the later contracts in what's known as "backwardation," indicating that higher volatility may not end right away.
Video: What VIX pits are seeing
September 1, 2015
Traders were buying VIX calls above the 40 level early in the session, but Group One's Mike Palmer says that activity quickly pulled back.
Video: Whipsaw moves in the VIX
August 31, 2015
Group One's Mike Palmer explains why the volatililty index saw broad swings right before and after the weekend. Traders are now focused on today's close.
Videocast: Volatility in September?
August 20, 2015
Group One's Jamie Tyrrell says traders are buying next month's calls on the volatility index, bracing against a pullback in the S&P 500.
Videocast: VIX draws September buyers
August 19, 2015
Group One's Jamie Tyrrell says large electronic buy programs are snapping up crash protection in the volatility index.