VIX ETF Bottom Holds Again

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VIX ETFs continue to stay flat as equity markets fight resistance

fear girl1 VIX ETF Bottom Holds AgainVIX ETFs and the VIX Index have managed to not drop any further, as the VIX Index rose .22% to close at ’13.55′ and the iPath S&P 500 Short Term Futures ETN (NYSEARCA:VXX) added .04%.  The VelocityShares Inverse VIX ETN (NYSEARCA:XIV) lost .05%.

VIX ETFs and the VIX Index have appeared bounce off of rock bottom, after a historic 40% drop in the past two weeks.  Fear has completely left the marketplace for now, as equity markets continue to hit their three year resistance levels.  It appears that VIX ETFs and the VIX Index are waiting to see if equities can breakthrough and turn into a new bull market; if equity markets do indeed breakout, then we can expect lower VIX prices.  Likewise, if equity markets do not breakout into new highs, then the VIX and VIX ETNs will likely see higher prices, although the VIX will have to move way higher to see December 2012 highs.

Also, considering that Congress is far from settlements regarding the debt ceiling and sequestration, the VIX might be in for a serious infusion of fear as soon as the bickering turns up to full volume.  Debt Ceiling Anxiety Spooks Investors on Tuesday.

VIX ETF Update: 

Volatility Index – New Methodology (VIX): Index: 13.55, +.22% 

iPath S&P 500 VIX Short-Term Futures ETN (NYSEARCA:VXX): +.04%, This ETN is designed to track volatility in the markets as measured by the Chicago Board Options Exchange Market Volatility Index (CBOE Index), a popular measure of the implied volatility of S&P 500 index options.  The CBOE Volatility Index is also known as the “fear” index or “fear” indicator in markets.  The iPath S&P 500 VIX Short-Term Futures ETN (NYSEARCA:VXX) prices itself off of the average and implied volatility of the first two months of futures contracts of the S&P 500 Index.

VelocityShares Daily 2X VIX Short-Term ETN (NYSEARCA:TVIX): -.63%, This ETN is designed to track 2X return on volatility in the markets as measured by the S&P 500 VIX Short-Term Futures Index.  The S&P 500 VIX Short-Term Futures Index measures the volatility of the S&P 500 Index via futures contracts as traded on the CBOE.  The CBOE Volatility Index is also known as the “fear” index or “fear” indicator in markets.

iPath S&P 500 VIX Mid-Term Futures ETN (NYSEARCA:VXZ): -.16%, This ETN is designed to track volatility in the markets as measured by the CBOE Volatility Index futures contracts.  The CBOE Volatility Index is also known as the “fear” index or “fear” indicator in markets.  The iPath S&P 500 VIX Mid-Term Futures ETN (NYSEARCA:VXZ) is priced from the average volatility of the 4th through 7th month futures contracts of the S&P 500 Index as traded on the CBOE.

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