On Wednesday the iPath S&P 500 VIX Short Term Futures ETN — a measure of volatility — was up about 3.5%, while the stock market surged again.
While U.S. stocks were little changed Thursday, was the increase in the volatility index VXX, +1.37% the day before a precursor to what might lie ahead? That is, a turning point in the market that could lead to the adoption of risk controls by institutional investors for what seems like the first time all year?
In addition, the day after Janet Yellen suggested that interest rates would continue to move higher, most likely at least, Treasury bonds are not reacting negatively. Instead, investors are buying them even in the face of potentially higher rates. We can see this by watching the iShares Barclays 20+ Year Treasury Bond ETF TLT, +0.55% and ProShares UltraShort Lehman 20+ Year ETFTBT, -1.16%