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VIX ends the red as stocks cut losses

Chris McKhann (chris.mckhann@optionmonster.com)

Major equity indexes were down at Friday's close but only after rebounding sharply from session lows, and the CBOE Volatility Index reversed into negative territory in the final minutes of trade.

The S&P 500 lost 4.52 points to close out the week at 1588.85. The SPX dipped as low as 1580 in the first 90 minutes of the day and then climbed from there. Resistance is at 1600 and support at 1560.

The Nasdaq 100 was down 2.59 points to 2856.48. It fell below 2835 before climbing out of its hole. Resistance is at 2878 and support at 2810.

The Russell 2000 was down 4.20 points to close at 942.85 after falling to 937 in the morning. Resistance is at 954 and support at 920.

The VIX was down 0.18 points, or 1.47 percent, to 12.06. It had climbed to 13.12 in the morning and remained positive right through the close but once again collapsed in the final 15 minutes after the bell. (The VIX trades until 4:15 p.m. ET.)

Te VIX futures were down or flat all day. The April futures lost 0.45 points, or 3.4 percent, to close at 12.70. The May futures fell 0.35 points to 14.15. This had the iPath S&P 500 VIX Short-Term Futures Note (:VXX) down 1.87 percent to another new all-time low of 18.35.

The VIX options traded 519,000 contracts, with calls slightly outpacing puts. The VVIX Index--which measures the implied volatility of those options--was down 1.2 percent to 82.39, suggesting that selling dominated the action. This means that traders were willing to sell volatility, and the volatility of volatility, even as the market fell.

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