CBOE VIX Volatility Index approaches yearly low.
The CBOE VIX (NYSEARCA:VXX) edged lower on Wednesday, as stocks extended their rally thanks to surging technology and health care companies.
The Chicago Board Options Exchange (CBOE) Volatility Index reached a low of 13.25 on Wednesday. That would have marked the lowest settlement of 2019. VIX would later settle at 13.58, where it was down 1.4%. The volatility gauge continues to exhibit weak underlying momentum as stocks look poised to smash previous highs.
On the equities front, the S&P 500 Index (NYSEARCA:SPY) rose 0.7% on Wednesday.
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 0.5%.
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 1.5%.
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 2.3%.
The Final Word: As stocks continue to push higher, investors can expect volatility to recede into the background. Volatility is also due for a seasonal downtrend beginning in May, setting the stage for a quiet second quarter.