CBOE VIX Volatility Index slowly gaining momentum, according to RSI.
The CBOE VIX (NYSEARCA:VXX) edged slightly lower on Thursday, although key barometer of momentum continued to show growing technical support for the volatility gauge.
The Chicago Board Options Exchange Volatility Index edged down 1.8% to 11.76, having previously reached its highest intraday level of the month. The so-called “fear index” spiked on Wednesday despite another record-setting rally for US stocks. Relative strength is in the mid-50s and rising, pointing to increased momentum.
The S&P 500 Index (NYSEARCA:SPY) closed down 0.1% on Thursday.
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 0.5%.
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 declined 0.8%.
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 1.5%.
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 advanced 6.1%.
The Final Word: Volatility remains very low by historical standards, but is showing gradual upward momentum. Investors should be cautious of a pullback in US equities as the Trump rally runs into resistance.