CBOE VIX Volatility Index backtracks on Wednesday as stocks extend rally.
The CBOE VIX (NYSEARCA:VXX) swung lower on Wednesday, as equity markets resumed their ascent thanks to rebounding technology shares.
The Chicago Board Options Exchange (CBOE) Volatility Index, commonly known as the VIX, bottomed at 14.61 on a scale of 1-100 where 20-25 represents the historic average. It would eventually settle at 14.74, down 3% for the session.
In stocks, the large-cap 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 0.8%.
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 declined 2.5%.
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 3.6%.
The Final Word: The volatility gauge suggests Wall Street has further upside ahead. However, the major indices are likely to run into resistance near all-time highs.