Both the S&P 500 and Nasdaq-100 were pretty strong last week rising 1.74% and 2.16% respectively. The outperformance of the NDX can be attributed to everyone’s favorite trading stock Apple (AAPL – 417.20) which rebounded from recent weakness. The VIX curve reacted to the bullish S&P 500 action in textbook fashion dropping in line with this sort of VIX weakness. VXN was down as well, but is at a 2 point premium to VIX which is the higher end of that spread for 2013.
I noted in a blog yesterday that we had the unusual occurrence of both VIX and the S&P 500 closing higher for two consecutive days. More about this rarity can be read at the link below –