VIX jumps as equities fall sharply
Chris McKhann | firstname.lastname@example.org
Equity indexes fell sharply yesterday, finishing at the lows of the day while the CBOE Volatility Index jumped almost 10 percent.
The S&P 500 was down 23.34 points, or 1.32 percent, to 1747.15. The benchmark index finished just off its session low. It has support at 1730 and then 1700. Resistance is at the all-time high of 1775.
The Nasdaq 100 was down 63.97 points, or 1.89 percent, to 3321.41. It too closed just off its lows of the day. The index has some support at 3300 and then 3220. Resistance is at 3408.
The Russell 2000 lost 19.55 points to 1079.09. The small-cap index has resistance at 1123 and support at 1044.
The VIX was up 1.24 points, or 9.79 percent, to 13.91. The volatility index was as high as 14.14 going into the close.
The VIX futures followed suit. The November futures were up 0.55 points to 14.25, while the December contracts gained 0.45 points to 15.40. That had the iPath S&P 500 VIX Short-Term Futures Note (VXX) up 3.54 percent to $12.70.
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.
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.