Equities rally through resistance
Chris McKhann | [email protected]
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: Muted activity in VIX calls
May 5, 2015
Even with the May futures rising above 15, Group One's Jamie Tyrrell says there has been surprisingly little interest in buying VIX calls.
Video: Traders target VIX 14 level
May 4, 2015
The volatility index is positive despite gains in the S&P 500, bucking their usual inverse relationship, and Group One's Jamie Tyrrell says traders continue to target the VIX 14 level.
Videocast: May VIX call buys return
May 1, 2015
With VIX futures falling as the market rebounds today, Group One's Jamie Tyrrell says 38,000 VIX May 18 calls were purchased today.
Videocast: VIX traders turn to June
April 30, 2015
Group One's Jamie Tyrrell says volatility traders are targeting June VIX contracts today as the recent heavy May call buying has apparently subsided.
Videocast: VIX 20 level targeted
April 29, 2015
Group One's Jamie Tyrrell says a big VIX call buyer is back with the market down today, this time targeting 75,000 May 20 contracts.