The CBOE Volatility Index (.VIX) is up .25 to 16.55, but set to close the week below 17 percent for the first time since October 2007. VIX is down from 19.41 the week before. The ongoing slide in the volatility comes amid a noticable decline in actual levels of volatility. After a day of choppy trade, the S&P 500 Index (.SPX) is set to close little changed on the day. The drop in the volatility index also reflects the ongoing shift in investor sentiment, which is confirmed by a number of other indicators. For example, the total put to call ratio (across all exchanges) fell to .64 Thursday and its lowest levels since January 7. Meanwhile, Investors Intelligence reports that, according to its latest survey, 46 percent are bullish and 29.9 percent bearish, which compares to 37.8 percent bullish and 37.4 percent bearish less than one month ago.
Category: All Indexes
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.