CBOE VIX Volatility Index heads higher as stock-rally comes undone.
The CBOE VIX (NYSEARCA:VXX) rose on Thursday, as global growth woes undercut risk appetite.
The Chicago Board Options Exchange (CBOE) Volatility Index reached a session high of 17.89 on a scale of 1-100 where 20 represents the historic average. The fear gauge later settled at 16.78, having gained 7.7%. That was the highest level in a week.
In stocks, the large-cap S&P 500 Index (NYSEARCA:SPY) declined 0.9%.
Major VIX ETFs:
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 1.6%.
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 advanced 5.1%.
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 6.4%.
The Final Word: While it’s too early to tell if volatility has made a definite return, stocks could run into resistance now that earnings season is winding down. This could make further gains difficult to justify in the short term.