The VS TR 2x Long VIX Futures ETF (UVIX) is experiencing significant downward pressure as volatility in the market declines. The underlying VVIX index, which measures the expected volatility of the S&P 500, has dropped by 8.80% to 97.21. This decline in volatility is largely attributed to a lack of immediate market catalysts and a general sense of stability in the equity markets. Despite some analysts signaling a potential market top, as indicated by valuation and behavioral indicators, the current market environment remains relatively calm, reducing the demand for volatility-based instruments.
The UVIX ETF fell to $3.23, marking an 8.64% decrease from its previous close as of 1:45 PM ET on January 3rd.