CBOE Market Closing Commentary 3.13.14

Markets sold off on strong volume.  DJIA off 231.19 (all 30 components lower), SPX down by 21.86 to 1846.34, NASDAQ lower by over 62 points.  Other major indexes off +1%.   Decliners led advancers on big board 2-1, Down volume beat up volume 5-1, and new lows beat new highs for the first time in a long time.  10-year yield dropped to 2.645% on a flight to quality.   VIX jumped 1.75 points to 16.22, a 12% jump.  Highest VIX close in five weeks.

Option volume was heavy, as CBOE traded 6.5 million of ~22 million contracts.  SPX and VIX each traded over 1 million options.  VIX Futures traded ~290k contracts.  SPY options were the busiest class with 2.574 million contracts change hands.  IWM was also busy with 660k trading.

Watch the VIX Futures in the extended hours session tomorrow morning, as well as S&P futures for a clue on whether tomorrow will be the fifth losing session in a row, not seen for over 20 months.  Ukraine situation getting worse is rattling Europe and copper hitting new lows has Asian markets selling off.