The NASDAQ-100 dropped 1.37% and the Russell 2000 was off 2.15% last week as the stock market posted negative performance across the board. There have been critics of how high the market has been in 2013 (since about June I think) and they were proven right, at least for a week.
The reaction out of the respective volatility indexes was exactly as would be expected. The CBOE Russell 2000 Volatility Index (RVX – 19.53) rose almost 10% last week while the CBOE NASDAQ-100 Volatility Index (VXN – 15.98) was up 7.61%. What is interesting to at least one volatility market observer is that both the VXN and RVX curves are maintaining a fairly normal (contango) price curve despite a tough week for stocks. The same cannot be said for the VIX curve and I’m honestly not sure how to interpret the divergence.