VIX Daily Update: Markets Stabilize After Volatility Approaches Two-Month Lows

CBOE VIX Volatility Index finishes relatively flat as share prices renew uptrend.

The CBOE VIX (NYSEARCA:VXX) declined noticeably on Wednesday before rebounding in the latter half of the session, as stock markets resumed their upward track following a choppy first half of the week.

The Chicago Board Options Exchange (CBOE) Volatility Index bottomed at 11.34 on Wednesday before reversing course later in the day. Vol would settle at 1.73, where it was down 2.7% on the day.

In stocks, the large-cap S&P 500 Index (NYSEARCA:SPY) rose 0.1% on Wednesday en route to new record highs.

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 0.8%.

ProShares Short VIX Short-Term Futures (SVXY) to track the inverse daily performance of the S&P 500 VIX Short Term Futures Index. SVXY advanced 0.4%. 

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 1.4%.

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 declined 1.4.

The Final Word: Volatility is receding at a historically upbeat time for Wall Street. Another solid earnings quarter will help cement the VIX in the low double-digits heading into the holiday season.