VIX, futures rise with market reversal

optionMONSTER

Equity indexes finally gave up some ground yesterday, pushing the CBOE Volatility Index and its futures higher.

The S&P 500 was down 13.81 points, or 0.83 percent, after opening the day by climbing to a new intraday high of 1687.18. It then saw significant volatility as it traded as low as 1648.86 before bouncing a bit into the bell. That 1687 level will likely be resistance, while support is at 1627.

The Nasdaq 100 lost 27.32 points, or 0.9 percent, to close at 2999.13. It followed a similar pattern, climbing as high as 3053.51. That price will be resistance, while support is at 2948.

The Russell 2000 had the worst percentage loss of 1.65 percent, or 16.52 points, to close at 982.26. It climbed to a new intraday high of 1008.23 and then gave up more than 30 points to the low shortly before the bell. That 1008 level will be resistance, while support is at 966.

The VIX was up 0.45 points, or 3.4 percent, to 13.82. It reached a high of 14.45 about 30 minutes before the bell and slipped from there. Those were the volatility index's highest levels since May 2, when the S&P 500 was 90 points lower. The VIX and the SPX usually move inversely.

The VIX futures were down at the end of the day after the May contracts settled on the open at 13.17. Both the June and July VIX futures gave up 0.10 points, to 15.30 and 16.40 respectively. But the iPath S&P 500 VIX Short-Term Futures Note (:VXX), which comprises those two futures, was up 1.09 percent to $18.63.

The VIX options traded 766,000 contracts, led by 484,000 calls. The SPDR S&P 500 Fund (:SPY) options topped yesterday's total option volume with 4.4 million contracts.


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