Equities rally through resistance
Chris McKhann | email@example.com
Equity indexes surged yesterday, breaking through key resistance levels. The CBOE Volatility Index climbed with the S&P 500 for the final 90 minutes of trade but still finished lower.
The S&P 500 gained 16.54 points, or 1 percent, to close just off its session high at 1671.71. It has resistance at 1680 and support at 1627.
The Nasdaq 100 rose 36.55 points, or 1.17 percent, to a new 13-year closing high of 3169.93. It now has support at 3055. (When equity indexes are at highs, further resistance levels are obviously projections not based on previous trading patterns, so I will refrain from listing them.)
The Russell 2000 was up 16.53 points, or 1.61 percent, to finish at session high of 1046.08. It has resistance at the August high of 1063 and support at 1000.
The VIX was down 0.22 points, or 1.39 percent, to 15.63. It declined inversely to the SPX's rise until the last two hours, when the VIX bounced off 15.22 and then climbed from there.
The VIX futures were down even more. The September and October contracts both fell 0.70 points, to 15.80 and 16.80 respectively. This had the iPath S&P 500 VIX Short-Term Futures Note (VXX) down 3.72 percent to $15.52.
Video: VIX drop lures call buyers
July 31, 2015
With the spot volatility index slipping below 12 today, Group One's Jamie Tyrrell says traders are buying the VIX August 12 calls while premiums are relatively low.
Videocast: VIX put selling pays off
July 30, 2015
The VIX is little-changed today, and Group One's Jamie Tyrrell explains how recent put selling has paid off for volatilty traders.
Video: Case study in VIX pullback
July 29, 2015
Group One's Jamie Tyrrell says the volatility index's move down in the last week illustrates just how quicly the VIX can fall as well as rise.
Video: Traders unload puts in VIX
July 28, 2015
As the market rallies today, Group One's Jamie Tyrrell says traders are selling August 14 and 14.50 VIX puts in the belief that downside will be limited.
Video: Call buyers ride pop in VIX
July 27, 2015
With the spot volatility index jumping well above 15 today, Group One's Jamie Tyrrell says VIX call buyers are targeting the 20 strike in August and September.