Rally drives VIX to 7-year lows

Chris McKhann (chris.mckhann@optionmonster.com)
June 9, 2014

Equity indexes continued to push higher on Friday as a number of metrics set new records, sending the CBOE Volatility Index to its lowest reading in more than seven years.

The S&P 500 gained 8.98 points, or 0.46 percent, to close at 1949.44. That was its session high and a new all-time record. It has support at 1900.

The Nasdaq 100 climbed 17.62 points, or 0.47 percent, to 3794.57. The NDX closed less than a point off its intraday peak, and both were new 13-year highs. It has support at 3700.

(When equity indexes are at highs, further resistance levels are obviously projections not based on previous trading patterns. We therefore will refrain from listing any.)

The Russell 2000 rose 11.27 points, or 0.98 percent, to finish at 1165.21. That is the small-cap index's best close since April 3, but it is still almost 50 points off its March high. It has resistance at 1200 and support at 1120.

The VIX was down 0.95 points, or 8.13 percent, to 10.73--the volatility index's low of the day and its lowest level since February 2007. The nine-day CBOE Short-Term Volatility Index (:VXST) fell 1.63 points, or 14.98 percent, to a new low of 9.25.

The VIX futures followed with June contracts down 0.65 points to 12 even and July futures slipping 0.75 points to 13.30. That sent the iPath S&P 500 VIX Short-Term Futures Note (VXX), which is composed of those two futures, down 5.01 percent to a new record low of $30.35.

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