Equities fell sharply yesterday, erasing their gains of the previous session and driving the CBOE Volatility Index up more than 24 percent.
The S&P 500 plunged 40.68 points, or 2.07 percent, to 1928.21--its worst close since Aug. 7. The SPX has resistance at 1980 and support at 1925, then 1900.
The Nasdaq 100 dropped 71.80 points, or 1.78 percent, to 3969.32. Unlike the SPX, it remained above Tuesday's close. The NDX has support at 3940 and resistance at 4050.
The Russell 2000 plummeted 29.13 points, or 2.66 percent, to 1067.99. That was the RUT's lowest close in exactly a year. The small-cap index has resistance at 1100 and support around 1040.
The VIX surged 3.65 points, or 24.16 percent, to 18.76. It put in its high of 19.38 just after the bell. The nine-day CBOE Short-Term Volatility Index (:VXST) soared 7.03 points, or 48.18 percent, to 21.62.
The VIX futures are now significantly lower than the spot volatility index, a relationship known as "backwardation," with October contracts at 17.20 and November futures at 17 even. That left the iPath S&P 500 VIX Short-Term Futures Note (VXX) up 9 percent to $32.21.
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