Volatility index down as equities gain
Chris McKhann | firstname.lastname@example.org
Equity indexes were higher yesterday but off the best levels of the morning. The CBOE Volatility Index and its futures were lower.
The S&P 500 was up 12.31 points at the end of the day, closing at 1639.04. It broke above 1646 in the morning, then slumped to 1630 an hour before the close. Resistance is at 1660 and support at 1608.
The Nasdaq 100 was up 27.40 points to 2971.26. The index was as high as 2988 and above its 20-day moving average in the morning, but not for long. Resistance is at 3024 and support at 2926.
The Russell 2000 gained 6.46 points to 987.84. It traded up to--then retreated from--resistance at 990. The next level of resistance is at 1000, while support is at 968.
The VIX was down 0.35 points, or 2.04 percent to 16.80. The volatility index was as high as 17.63 an hour before the close.
The VIX futures were lower all day. The June contracts, which have only one day left to trade, finished yesterday down 0.60 points to 16.95. The July futures were down 0.50 points to 17.80. This pushed the iPath S&P 500 VIX Short-Term Futures Note (VXX) down 2 percent to 20.38.
Videocast: VIX traders look to June
March 4, 2015
Group One's Jamie Tyrrell says near-term VIX call buying has declined as traders are move to contracts in later months.
Videocast: Near-term pop in VIX?
March 3, 2015
Group One's Jamie Tyrrell says today's action in the VIX pits indicates that traders are positioning for volatility to rise in the near term.
Videocast: Traders see floor in VIX
March 2, 2015
Group One's Jamie Tyrrell says traders are selling March VIX puts, apparently believing that further downside potential in the volatility index is limited.
Videocast: VIX 'cash spread' hedge
February 27, 2015
Group One's Mike Palmer explains the strategy behind a VIX "cash spread" as traders cover positions going into the weekend.
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.