Volatility Poised to Increase, Nomura Says: Technical Analysis
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The VIX, as the Chicago Board Options Exchange Volatility Index is known, may rally after a 54 percent slump since May brought it close to a long-term support level, according to Nomura Holdings Inc.
The VIX, which measures the cost of buying protection against losses in the Standard & Poor’s 500 Index, fell 11 percent to 21.2 last month, the biggest monthly decline since July. The drop has brought the measure closer to a support level, or a floor limiting declines, formed by lows going back three years, according to Nomura.