VIX rises with stocks at new highs
Equity indexes again climbed to new highs into the Thanksgiving holiday, though the CBOE Volatility Index gained ground as well.
The S&P 500 was up 4.48 points to close at 1807.23. It was above 1808 on several occasions during the day but was unable to break Tuesday's all-time intraday high. It has support at 1775.
The Nasdaq 100 rose 24.71 points to 3470,48, yet another new 13-year high. It was just a point off the intraday peak, also a 13-year record. The NDX has support at 3360.
The Russell 2000 gained 6.80 points to 1141.33. That was just fractionally off a new record high. The small-cap index has support at 1100.
(When equity indexes are at highs, further resistance levels are obviously projections not based on previous trading patterns. We therefore will refrain from listing any.)
The VIX was up 0.17 points, or 1.33 percent, to 12.98. It was down at 12.44 just after the open but climbed to finish at its high of the day.
This is surprise given that the time decay of the holidays has to come of the S&P 500 options and typically depresses the VIX. The volatility index, which is based on those options, typically moves inversely to the SPX. It is usually not a good sign for equities when the SPX is at new highs and the VIX climbs, especially when we would statistically expect it to be lower.
The VIX futures followed the spot volatility indext, with December contracts finishing at 13.85 and the January futures at 15.15. The iPath S&P 500 VIX Short-Term Futures Note (:VXX) was unchanged on the day.
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