On Monday, the VIX closed at 11.56, down 8.18 percent.?This followed Friday’s close of 12.59.
At one point during Monday’s trading day, the VIX dropped to?11.51. This represented its lowest intraday last seen on April 16, 2007.?
During the trading day, there was active paper trading in VIX calls.
With Monday’s 11.56 close, it comes close to the?Feb. 26, 2007 close at 11.15, reported Dow Jones. In addition, the last 20 years, the VIX has only ended at 11.56 or below 6% in this time.?
But for every down day for the VIX, it means an up day for the S&P 500. On Monday, it closed at?+0.32%, up 5.04 points to 1,556.22. This is nine points shy from the October 2007 high with a 1,565.15 close.?
In a research note on Monday, ConvergEx analysts said via ETF Trends, “Traditionally high volatility is associated with growth in stock market return, and this low-vol rally is quite the anomaly. It might be emotionally difficult to buy when fear reigns, but it usually proves profitable. Conversely, putting new money to work when complacency rules ? as it does now ? is seldom a recipe for success.?
What will Tuesday’s market bring??