VIX falls as SPX hits record close

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Equity indexes climbed to new highs yesterday, pushing the CBOE Volatility Index lower.

The S&P 500 added 9.13 points, or 0.49 percent, to 1854.29. It finished just off the session high and is a new all time closing high for the SPX. It has support at 1820.

The Nasdaq 100 climbed 23.20 points, or 0.63 percent, to close at 3699.80 after climbing to 3704.65 in the afternoon. Both are new 13-year highs. The NDX has support at 3650.

The Russell 2000 gained 6.22 points, or 0.53 percent, to 1187.94. That was the day's high and a new closing high for the RUT, though it was just shy of Wednesday's intraday high of 1188.06. The small-cap index has support at 1160.

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

The VIX was down 0.31 points, or 2.16 percent, to 14.04. It had a reasonably volatile day of its own, climbing to 14.69 just after the open and fell to 13.92 in the early afternoon. The volatility index jumped back up to positive territory at 14.46 as the SPX came off its highs, then dropped into the close.

The spot index remains more than 100 percent higher than the actual volatility of the S&P 500, which has a 10-day historical reading of 6.8 percent.

The VIX futures ended slightly lower, with the March contracts at 15.05 and the April futures at 15.55. With that, the iPath S&P 500 VIX Short-Term Futures Note (:VXX) was off fractionally to $43.10. Even with the SPX at new highs and its structural headwinds, the VXX remains 8 percent above its low from January.

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