VIX and SPX fall, bucking inverse trend


The CBOE Volatility Index fell Friday even as the broad equity indexes slid into negative territory by the end of the day as the two indexes departed from their usual inverse correlation.

The VIX collapsed again at the close as it finished at 14.30, down 0.22 points, or 1.5 percent. It had been up at 14.70 in the last few minutes before the bell.

The S&P 500 ended at 1460.93, down 0.47 points at the close. It had popped above 1470 in the first hour and spent the rest of the day giving up those gains. Resistance remains 1471 and support at 1448.

The Nasdaq 100 lost 16.66 points to finish the week at 2811.94. It had hit a high of 2845.97 in the morning but dropped back below its 20-day moving average, forming a potential " bearish engulfing candle " pattern. Resistance remains at 2851 and support at 2780.

The Russell 2000 Index closed at 842.86, down 1.80 points, after reaching 853.57 in the first hour of trade. Resistance remains at 856 and support at 832.

The VIX futures followed the volatility index lower. The October futures fell 0.05 points to 15.75, and the November contracts dipped 0.15 points to 17.25.  

This pushed the VelocityShares Daily 2X VIX Short-Term Note (TVIX), the ProShares Trust Ultra VIX Short-Term Futures Fund (UVXY), and the iPath S&P 500 VIX Short-Term Futures ETN (VXX) all to new lows. As expected, the VXX finally underwent its 4-to-1 reverse split, which created issues for some data applications.

More than 804,000 SPX options traded on the day, with 500,000 puts. The VIX options traded 457,000 contracts, with 330,000 calls. The VVIX Index, which measures the implied volatility of the VIX options, pulled back from an all-time low to close at 83.10, down fractionally on the day.

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