The VIX and S&P 500 Are Moving in Tandem Like It's 1995

For the ninth time this year, the CBOE Volatility Index and S&P 500 Index moved in unison on Wednesday, with the options-price proxy surging 11 percent as the stock gauge climbed for a seventh straight day. The behavior has become increasingly frequent: The two measures are moving in tandem by the most since 1995 -- a year when the VIX recorded its lowest ever annual average and shares reached 77 record highs, more than any other year since 1980. The rising VIX may be a result of hedge funds that were short S&P 500 options buying them back following the equity rally as expiration approaches, according to Michael Block of Rhino Trading Partners.

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