CBOE VIX Volatility Index trades firmly higher on Wednesday.
The CBOE VIX (NYSEARCA:VXX) advanced sharply on Wednesday, as a rollover in technology and financials shares weighed on the S&P 500 Index.
The Chicago Board Options Exchange (CBOE) Volatility Index reached a session high of 22.36 on a scale of 1-100 where 20 represents the historic average. The fear index closed at 20.81, having gained 4%. With the gain, volatility has seen a sharp rise in momentum according to the RSI and MACD.
In stocks, the S&P 500 Index fell 0.8% on Wednesday.
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 2.5%.
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 1.2%.
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 3.8%.
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 advanced 5.2%.
The Final Word: The volatility regime is here to stay – a development that spells trouble for stocks. It remains to be seen whether holiday cheer, and upcoming trade negotiations, can offset the recent bouts of turmoil for Wall Street.