VIX Becomes Hot Topic
With volatility remaining near historic lows, it has been hard to believe record highs are still in play...if you are listening to the talking heads and slick-talking pros. If you have been reading us, then you know we have stated the low VIX would drive them bonkers. "Ridiculously low" and "the VIX is broken" were some of the dumbest comments we heard yesterday, and it gives us a chuckle knowing how overpaid most analysts really are and how clueless they have become.
The Dow climbed 118 points, or 0.6%, to close at 20,172. The blue-chips held positive territory throughout Thursday while reaching an all-time intraday high of 20,206. Upper resistance at 20,125-20,200 was cleared to open the door for a possible push towards 20,350-20,400 over the near-term. Rising support is at 20,000-19,900.
The S&P 500 soared 13 points, or 0.6%, to end at 2,307. The index made a steady run to 2,311 ahead of the closing bell to set a fresh record high while clearing lower resistance at 2,300-2,325. Support has moved up to 2,290-2,285.
The Nasdaq advanced 32 points, or 0.6%, to finish at 5,715. Tech tested its third-straight lifetime high of 5,722 intraday while clearing upper resistance at 5,675-5,700. The close above the latter gets 5,750-5,800 in play. Support is trying to build a base at 5,675-5,650 with a move below the latter possibly signaling a short-term top.
The Russell 2000 surged 19 points, or 1.5%, to settle at 1,378. The small-caps lead the breakout to higher highs following their run to 1,379 on Thursday. The move and close above upper resistance at 1,370-1,375 was a bullish sign. Fresh hurdles are at 1,385-1,390 with the all-time peak north of 1,392. Support has moved up to 1,370-1,365.
The S&P 500 Volatility Index ($VIX, 10.88, down 0.57) tested a high of 11.53 on the open with lowered resistance at 11.50-12.50 holding. The intraday low of 10.74 split fresh support at 11-10.50.