Selloff sends VIX back above 13
Chris McKhann | email@example.com
Equity indexes saw their steepest decline of the New Year yesterday, driving the CBOE Volatility Index back above the 13 level.
The S&P 500 fell 23.17 points to 1819.20, its lowest close since Dec. 20. It was briefly in positive territory in the first hour of trade but then steadily lost ground from there, dipping as low as 1815 though bouncing slightly into the close. Resistance remains at its high of 1849, while there is some support at 1810 and then 1780.
The Nasdaq 100 dropped 52.29 points to 3512.80. It followed the same pattern as the SPX and bounced right off 3500. Resistance is at 3592 and support at 3455.
The Russell 2000 was down 16.47 points to 1148.06. The small-cap index has resistance at 1168 and support at 1120.
The VIX gained 1.14 points, or 9.39 percent, to 13.28 after dipping to 11.82 in the morning. The VXST, the 9-day volatility index, was up 31 percent to 13.09.
The VIX futures followed higher. The January contracts, which have just over a week to trade, closed at 13.80. The February futures finished at 14.60. That had the iPath S&P 500 VIX Short-Term Futures Note (VXX) up 3.6 percent to close at $42.31.
Videocast: Futures see higher VIX
February 26, 2015
Although the spot volatility index remains below 14, Group One's Dominic Savino says the March VIX futures are targeting the 16 level.
Videocast: Low short-term volatility
February 25, 2015
Although a big player is buying VIX March 23 calls, Group One's Mike Palmer says the iPath S&P 500 VIX Short-Term Futures Note (VXX) settled today near 11.
Videocast: VIX falls as Yellen talks
February 24, 2015
Group One's Mike Palmer says traders are betting on lower volatility amid speculation that the Federal Reserve will not hike interest rates before the end of the year.
Videocast: The VIX ahead of Yellen
February 23, 2015
Volatility has calmed down after a rocky open today, but Group One's Mike Palmer says the VIX could move early tomorrow with Senate testimony by Fed Chair Janet Yellen.
Videocast: VIX on eve of settlement
February 17, 2015
The spot volatility index has bounced as expected after the three-day weekend, and Group One's Jamie Tyrrell says the action is in the VIX puts ahead of tomorrow's February expiration.