Equity indexes rallied sharply yesterday while volatility expectations continued to recede.
The S&P 500 climbed 16.68 points, or 0.85 percent, to 1971.74. That was essentially the high of the day and its best close since July 28. The SPX has resistance at 1991 and support at 1930.
The Nasdaq 100 gained 32.98 points, or 0.83 percent, to a new 13-year high of 4020.50. It has support at 3950. (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 surged 16.76 points, or 1.47 percent, to 1158.40. That was its session high and the small-cap index's highest close since July 14. Resistance is now at 1170 and support at 1140.
The CBOE Volatility Index fell 0.83 points, or 6.31 percent, to 12.32. The nine-day CBOE Short-Term Volatility Index (:VXST) tumbled 2.27 points, or 15.83 percent, to 12.07.
The August VIX futures, which have just one more day to trade, closed the regular session down at 12.55. The September futures finished at 13.40. That had the iPath S&P 500 VIX Short-Term Futures Note (VXX) down 3.74 percent to $27.80.
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