Sharp rally sends VIX back below 17
U.S. equity indexes rallied on Eurozone stimulus news yesterday, closing above their 50-day moving averages for the first time in at least two weeks and sending the CBOE Volatility Index below the 17 level.
The S&P 500 rose 31.03 points, or 1.53 percent, to 2063.15. It saw some morning vacillation before pushing higher throughout the session, also rising above its 20-day moving average. The SPX closed just below resistance at 2065, with the next level at 2090. Support is at 2000.
The Nasdaq 100 jumped 78.27 points, or 1.87 percent, to 4270.36. It too broke above its 20-day moving average and had its best close of the year. The NDX has resistance at 4300 and support at 4100.
The Russell 2000 surged 24.12 points, or 2.07 percent, to 1190.37. Despite the strong move, the RUT is just back to where it was a couple of weeks ago. The small-cap index has resistance is 1200 and support at 1160.
The VIX fell 2.45 points, or 13 percent, to 16.40. The volatility index had spiked above 19 in the morning.
The nine-day CBOE Short-Term Volatility Index (:VXST) dropped 4.78 points, or 23.48 percent, to 15.58--finally back below the spot VIX. It was above 20 in the opening minutes of the session.
The VIX futures followed lower, with February contracts at 17.85 and March futures at 18.15. The iPath S&P 500 VIX Short-Term Futures Note (VXX) fell 6.43 percent to $31.30.
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