Fear Index rises on Monday, but underlying conditions little changed.
The CBOE VIX (NYSEARCA:VXX) rose on Monday, but the underlying picture continued to show stable market conditions ahead of high-profile corporate earnings.
The Chicago Board Options Exchange (CBOE) Volatility Index climbed 3.3% to 9.82, on a scale where readings below 20 are generally associated with complacency in the market. The fear index hovered between 9.71 and 10.00 throughout the day after closing at 9.51 on Friday.
The large-cap S&P 500 Index (NYSEARCA:SPY) finished flat on Monday.
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 declined 2.7%.
VelocityShares Daily Inverse VIX Short Term Futures ETN: (NYSEARCA:XIV) Designed to track the inverse daily performance of the S&P 500 VIX Short Term Futures Index. XIV advanced 2.6%.
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 declined 5.3%.
VelocityShares Daily Short Term VIX 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 declined 4.9%.
The Final Word: The fear index continues to show prevailing calm on Wall Street. This may soon change as a political battle over healthcare resumes in the coming days and weeks.