CBOE VIX Volatility Index holds narrow range as calm prevails on Wall Street.
The CBOE VIX (NYSEARCA:VXX) traded between gains and losses on Tuesday, as stock markets struggled to regain momentum following a landmark trade agreement between the United States, Canada and Mexico.
The Chicago Board Options Exchange (CBOE) Volatility Index closed at 12.02, where it continues to trade well below the historic average. The so-called “fear index” exhibits weak momentum based on the technical charts.
In stocks, the large-cap S&P 500 Index (NYSEARCA:SPY) finished flat on Tuesday.
Major VIX ETFs:
iPath S&P 500 VIX Short Term Futures ETN: (NYSEARCA:VXX) Designed to offer exposure to the S&P 500 VIX Short Term Futures Index Total Return. The Index uses CBOE Volatility Index futures by way of a long position in the first and second month VIX Futures contracts. VXX advanced 0.2%.
ProShares Short VIX Short-Term Futures (SVXY) to track the inverse daily performance of the S&P 500 VIX Short Term Futures Index. SVXY declined 0.1%
ProShares Ultra Short Term VIX Futures: (NYSEARCA:UVXY) UVXY is designed to deliver 2X (leveraged) returns of the day’s moves in the S&P 500 VIX Short Term Futures Index. It tacks the two front months of the futures contract. UVXY advanced 0.3%.
VelocityShares Daily 2x VIX Short Term Futures ETN (NYSEARCA:TVIX) TVIX is a leveraged VIX ETN designed to deliver 2X the returns of the daily S&P 500 Short Term Futures Index. TVIX was unchanged.
The Final Word: Based on the VIX, stock markets face little risk of reversal anytime soon. It remains to be seen whether optimism can be maintained ahead of corporate earnings or whether an ongoing tariff war with China will trigger a shift in investor sentiment.