VIX was slightly higher on the week despite the S&P 500 closing at all-time highs. I often point people in the direction of the volatility futures markets as a secondary indication of expected volatility. Those markets told a different story last week with all futures lower on the week. The futures curve had been pretty steep so it appears a reversion to a more normalized shape. VXN was also higher, but like the VIX curve, all the futures markets were lower.
With Thanksgiving, Christmas, and New Year’s holidays on the horizon do keep in mind VIX gets a little seasonal. VIX is calculated using calendar days and isn’t adjusted for holidays. If the S&P 500 keeps moving higher then VIX may actually make a run at a new 2013 low based on the extra headwind of the holidays.