VIX below 17 as stocks extend streak
Chris McKhann | email@example.com
More gains in the major equity indexes yesterday made for the market's best three-day run in 2013.
The S&P 500 was up just shy of 10 points, or 0.62 percent, to close at 1613.20. Earlier in the session it peaked at 1620, the 20-day moving average, but found resistance there and pulled back. It has further resistance at 1652 and support at 1560.
The Nasdaq 100 was up 13 points, or 0.45 percent, to 2906.84. It has resistance at 3000 and support at 2825.
The Russell 2000 gained 16 points, or 1.67 percent, to finish at 979.92 as it led the other indexes in percentage gains. It resistance at 1000 and support at 943.
The CBOE Volatility Index continued its slide, giving up 0.35 points, or 2 percent, to finish at 16.86. The VIX touched 16.34 in the morning and vacillated from there. It remains at a discount to actual volatility in the S&P 500.
The VIX futures fell more than the spot volatility index. The July VIX futures shed 0.65 points to finish at 18.20, and the August contracts gave up 0.55 points to close at 19.05. This had the iPath S&P 500 VIX Short-Term Futures Note (VXX) down 4 percent to $20.81.
Video: Traders sell bounce in VIX
September 4, 2015
The volatility index has popped back above 27, but the CME's Russell Rhoads says traders are selling calls apparently in the belief that the VIX won't skyrocket.
Videocast: How to hedge volatility
September 3, 2015
Russell Rhoads of the CME explains the pros and cons of leveraged exchange-traded funds that are based on VIX futures.
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.