U.S. Markets open in 5 hrs 23 mins

Record rally sends volatility index lower

Chris McKhann (chris.mckhann@optionmonster.com)

Equity indexes rallied strongly Friday on better-than-expected employment numbers, pushing the S&P 500 well above 1600 and sending the CBOE Volatility Index back below the 13 level.

The S&P 500 was up 16.83 points, or 1.05 percent, to yet another new closing high of 1614.42. It hit the day's high just above 1618 in the morning and then traded sideways from there. Support is at 1577.

The Nasdaq 100 added 33.45 points, or 1.15 percent, to finish at 2944.59. It climbed as high as 2952.22, a new 13-year high. Support is at 2838.

The Russell 2000 rose 14.57 points, or 1.55 percent, to 954.42, finally breaking to another new closing high. It traded as high as 959.42 in the first hour of the session and settled from there. Support is at 930 and then 900.

The VIX fell 0.74 points, or 5.45 percent, to 12.85, its lowest close since April 12. The volatility index reached its low of the day just before the bell. It was as low as 11.05 in mid-March.

The May VIX futures finished the day at 14.30 and the June VIX futures at 15.25. That had the iPath S&P 500 VIX Short-Term Futures Note (:VXX) down 2.21 percent to 18.68.

The VIX options traded 364,000 contracts, led by 227,000 calls. The VVIX Index, which measures the implied volatility of those options, was down 3.5 percent to 80.91. The VXX saw 347,000 options change hands, with 220,000 puts. 

More From optionMONSTER