The markets survived its first week of the new year but for the VIX, it was off to a down start with four straight days of declines.
On Friday, it closed at 13.83, down 5.01%.??With the fall taking the VIX below 14, it was a first in three months but it dodged its low close on Aug. 17 with a 13.45 finish.
This level is unusual for the VIX as it has traded below a 14 over 15 times over the past five years–all taking place since August, reported the Wall Street Journal. In addition, the VIX has endured a close under 14 only four times ? two times in in August and twice in ?September.
Rewind to Dec. 28, 2012 and the VIX had its greatest one-day percentage gain not since November 2011.
The VIX rose 3.25 points, or almost 17%, to 22.72 last Friday; this landed the fear index at its highest level since mid-June. This rise was just part of a two-week rise in the VIX of more than 46%; this broke its longest streak under a 20 close in five-plus years, reported The Wall Street Journal.
Meanwhile as the VIX falls, the market rises and on Friday,?stocks jumped and hit weekly gains with the S&P 500 index ending the day at a five-year high. This came after the passage by Congress of vital budget legislation and a jobs report that showed jobs are being moderately added.?
For the day, the Dow closed +43.85; the S&P 500 +7.50 and the Nasdaq +1.09.