VIX drops again as S&P 500 hits record

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Equity indexes rallied strongly yesterday, sending the S&P 500 to all-time highs and pressuring the CBOE Volatility Index and its futures once again.

The S&P 500 gained 19.12 points, or 1.22 percent, to close at 1587.73. That is a new closing high for the SPX, which finally broke above its intraday high from 2007 and climbed to 1589.07 just before the bell. First support is now 1560 and then 1540.

The Nasdaq 100 rose 54.54 points, or 1.94 percent, to finish the day at 2859.21. The NDX finally broke out of recent resistance but remains below its 52-week highs from September. It has support 2805 and then 2750.

The Russell 2000 finished the day at 946.09, up 1.8 percent, or 16.75 points. The small-cap index finally climbed back above its 20-day moving average but is still below levels from the second half of March. Resistance remains at 954, while support is at 920.

The VIX dropped 0.48 points to 12.36. The volatility index fell to 12.32 in the first 90 minutes of the session but climbed back to 12.88 in midday trading. It again gapped lower after the bell, as it continues to trade until 4:15 p.m. ET. It fell even as actual volatility rose with the big move higher.

The April and May futures were both down 0.44 points to 13.05 and 14.5 respectively. This had the iPath S&P 500 VIX Short-Term Futures Note (:VXX) down 2.6 percent to yet another all-time low of 18.79. Interestingly, it too was above the morning low of 18.73.

The VIX options turned over 532,000 contracts, led by 338,000 calls. The VVIX Index, which measures the implied volatility of those options, was up 0.87 percent to 82.75. 

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