The Week in VXST – 10/27 – 10/31

The S&P 500 did what it has done for some time and rebounded to new highs. VXST reacted by dropping 6.5% and finishing the week at 13.80. However, when we look back VXST at 13.80 shows some real concern about the equity market continuing higher. The last new high for the S&P 500 was on September 18th when we closed at 2011 – on that day VXST finished at 11.05. The higher VXST makes me think the number of diehard bulls is waning despite another record of the S&P 500.

VXST PA

Taking a look at the curve shows some normal with quite a spread being maintained by the near term (2 day until expiration) future versus the index. On the option side open interest is heaviest for the Nov 5th 15 Call, Nov 5th 20 Call and Nov 5th 22 Call.

VXST Curve