VIX subdued despite S&P 500 pullback
David Russell | firstname.lastname@example.org
Equities continued to drift lower yesterday, but volatility remained subdued.
The S&P 500 declined 0.38 percent to 1690.91, its third straight drop and second consecutive close under 1700. It also dipped below its 10-day moving average, which could suggest a potential weakening of bullish momentum. The index bounced around the same 1687 level where it peaked in May and has further support at 1670.
The Nasdaq 100 was the strongest of the three major indexes we track, shedding just 0.11 percent to 3118.69. Support remains at 3030.
The Russell 2000 small-cap index led to the downside for the second straight day, falling 0.74 percent to 1044.34. Support is at 1020.
(When equity indexes are at highs, further resistance levels are obviously projections not based on previous trading patterns, so we will not guess at them here.)
The CBOE Volatility Index rebounded 2 percent to 12.99 but surrendered most of its earlier gains. The VIX and S&P 500 usually move in opposite directions. The iPath S&P 500 VIX Short-Term Futures Note (VXX), which is based on the two nearest-month VIX futures contracts, rose 1.1 percent to $14.64.
Video: VIX rises with call buying
May 29, 2015
With the spot volatility index higher in this market selloff, Group One's Jamie Tyrrell says traders are buying the VIX June 16 and 17 calls.
Videocast: VIX going to Weeklies
May 28, 2015
Group One's Jamie Tyrrell says new VIX Weekly options will soon replacee available, replacing the nine-day CBOE Short-Term Volatility Index (VXST) contracts.
Video: June VIX calls bought again
May 27, 2015
Even though the market has reversed course with today's rally, Group One's Jamie Tyrrell says traders are buying VIX June 18 calls for the second session in a row.
Video: Volatility measures jump
May 26, 2015
Group One's Jamie Tyrell says traders are buying June and July VIX calls with the spot index up 15 percent and the nine-day CBOE Short-Term Volatility Index (VXST) spiking 40 percent.
Video: Huge June VIX call buy
May 22, 2015
Group One's Jamie Tyrrell says one large player purchased 140,000 July 18 calls in the VIX, adding to heavy upside buying earlier in the week.