S&P 500, Russell 2000 at new highs
Chris McKhann | email@example.com
Equity indexes gained on the day, with two of the three pushing to new record highs while the CBOE Volatility Index declined.
The S&P 500 as up 3.44 points to 1695.53, another record-high close. The SPX broke above 1697 in the morning but then went sideways. It has support at 1652.
The Nasdaq 100 was up 10.30 points to 3055.23, trying to make up some of Friday's losses. It has resistance at 3091 and support at 3000.
The Russell 2000 picked up 2.93 points to close at 1053.41. That wasn't far off the intraday high and is a new closing high. It has support at 1000.
(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 VIX was down 0.25 points, or 1.99 percent, to 12.29--the very low of the day. It remains higher than actual volatility, with the 20-day historical rate of the SPX at 9.3 percent and the 10-day reading at 7.3 percent.
The August VIX futures lost 0.20 points to close at 14.70, and the September futures slipped 0.30 points to 16.20. This had the the iPath S&P 500 VIX Short-Term Futures Note (VXX) down 2.1 percent to $15.83.
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.