Volatility Index Drops 10%, To 72.7, After Late-Day Rally
At this level, the VIX is still tremendously high and Friday's close marks the fifth day on record that the index has closed above 70. It closed above that level for the first time on Oct. 17, when it ended at 70.3.
Known as the "fear gauge," the VIX tracks prices at which investors are willing to buy and sell options on the Standard and Poor's 500 index, often to protect themselves against declines in stock prices.
As such, the VIX tends to move inverse to the stock market and is used to determine the severity of future swings in the market.
-By Tennille Tracy; Dow Jones Newswires; 201-938-2345; tennille.tracy@dowjones.com
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(END) Dow Jones Newswires
November 21, 2008 16:44 ET (21:44 GMT)
Publié le 21 novembre 2008 Copyright © 2008 Dowjones
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