VIX at 14 as SPX, NDX hit highs
The S&P 500 and Nasdaq 100 finished last week at new highs, sending the CBOE Volatility Index back to the 14 level.
The overall option volume was very heavy for a bullish day, with more than 21 million contracts changing hands. The sentiment was very bullish across the major index and ETF options.
The S&P 500 added 23.40 points, or 1.17 percent, to 2018.05. That is a new all-time closing high, though SPX failed to break above the intraday high of 2019.26 set on Sept. 19. The benchmark index has added almost 200 points in the last two weeks from the recent lows. It has support now at 1965.
The Nasdaq 100 surged 57.57 points, or 1.4 percent, to 4158.21. The NDX posted new intraday and closing 13-year highs. It has support at 4050.
(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 jumped 17.74, or 1.53 percent, to 1173.51, its best close since the start of September. The small-cap index has support at 1140 and resistance at 1180, then around 1200.
The VIX fell 0.49 point, or 3.37 percent, to 14.03. The volatility index opened below 14 and spent the morning climbing with the SPX, but the VIX dropped from unchanged in the last hour of the session. The nine-day CBOE Short-Term Volatility Index (:VXST) did the same, ultimately lose 0.20 point to close at 13.80.
The VIX futures actually climbed into their close but still showed losses. The November futures finished at 15.80, down 0.35 point, while December contracts lost 0.25 point to 16.05. The iPath S&P 500 VIX Short-Term Futures Note (VXX) was off 2.63 percent to $30.32.
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