CBOE VIX Volatility Index edges lower as stock markets stabilize.
The CBOE VIX (NYSEARCA:VXX) declined on Wednesday, as the S&P 500 rebounded ahead of a pair of high-profile earnings later in the week.
The Chicago Board Options Exchange (CBOE) Volatility Index, commonly known as the VIX, fell 6.2% to 13.40. The so-called “fear index” had risen in each of the last two sessions but remained well below the historic mean.
In stocks, the large-cap S&P 500 Index (NYSEARCA:SPY) gained 0.4%.
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 1.4%.
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 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 5.3%.
The Final Word: Volatility rose at the start of the week but remains subdued overall. This bodes well for the stock rally, now in its fourth month.