The VIX Index and VIX ETNs soar as stocks and ETFs fall VIX, the CBOE S&P 500 Volatility Index, also known as the fear indicator, jumped 13.72% today in response to the broad based sell off in U.S. equity markets on Monday.  The VIX Index closed at 14.67, up sharply from recent levels but still below its long term average of 20.  It still remains below its 50 and 200 day moving averages and on multiple sell signals. The VIX Index moves inversely to equities and so found new strength today as fear returned to U.S. markets. Monday’s losses for the Dow Jones Industrial Average (NYSEARCA: DIA ) and S&P 500 Index (NYSEARCA: SPY ) came just one trading day after both indexes set new short term highs. The Dow Jones Industrial Average (NYSEARCA: DIA ) closed above 14,000 on Friday for the first time above that level in more than five years (October, 2007) and the S&P 500 Index (NYSEARCA: SPY ) gave up the 1500 mark, a level also reached on February 1st for the first time since late 2007. Major U.S. stock indexes were very oversold and were due for a correction and fundamental factors including the upcoming government spending debate added to renewed fear in the markets. Before today’s sell off, major U.S. indexes were up in the range of 5-6%, and even after today’s drop, the S&P 500 Index (NYSEARCA: SPY ) is still up 4.8% year to date. Read “U.S. Index ETFs and Stocks Defy Gravity” VIX ETF Update: iPath S&P 500 VIX Short-Term Futures ETN (NYSEARCA:VXX): +6.89%, This ETN is designed to track volatility in the markets as measured by the Chicago Board Options Exchange Market Volatility Index (CBOE Index), a popular measure of the implied volatility of S&P 500 index options.  The CBOE Volatility Index is also known as the “fear” index or “fear” indicator in markets.  The iPath S&P 500 VIX Short-Term Futures ETN (NYSEARCA:VXX) prices itself off of the average and implied volatility of the first two months of futures contracts of the S&P 500 Index. VelocityShares Daily 2X VIX Short-Term ETN (NYSEARCA:TVIX): +11.22%, This ETN is designed to track 2X return on volatility in the markets as measured by the S&P 500 VIX Short-Term Futures Index.  The S&P 500 VIX Short-Term Futures Index measures the volatility of the S&P 500 Index via futures contracts as traded on the CBOE.  The CBOE Volatility Index is also known as the “fear” index or “fear” indicator in markets. iPath S&P 500 VIX Mid-Term Futures ETN (NYSEARCA:VXZ): +2.68%, This ETN is designed to track volatility in the markets as measured by the CBOE Volatility Index futures contracts.  The CBOE Volatility Index is also known as the “fear” index or “fear” indicator in markets.  The iPath S&P 500 VIX Mid-Term Futures ETN (NYSEARCA:VXZ) is priced from the average volatility of the 4 th through 7 th month futures contracts of the S&P 500 Index as traded on the CBOE. S&P 500 Dynamic VIX ETF (NYSEARCA:XVZ): +1.14%, This ETN is designed to track volatility in the markets as measured by the S&P 500 Dynamic VIX Futures Total Return Index.  The S&P 500 Dynamic VIX Futures Total Return Index seeks to combine results of volatility of the S&P 500VIX Short-Term Futures Index Excess Return and the S&P 500 VIX Mid-Term Futures Index Excess Return to create an accurate market volatility reading, as measured by the CBOE.  The CBOE Volatility Index is also known as the “fear” index or “fear” indicator in markets. Velocity Shares Daily Inverse VIX Short-Term ETN (NYSEARCA:XIV): -6.48%, This ETN is designed to inversely track the volatility in the markets as measured by the S&P 500 VIX Short-Term Futures Index.  The S&P 500 VIX Short-Term Futures Index measures the volatility of the S&P 500 Index via futures contracts traded on the CBOE.  The CBOE Volatility Index is also known as the “fear” index or “fear” indicator in markets. Bottom line: VIX Index soars on renewed fear in U.S. equity markets but still remains below its long term average.  Should the consolidation/correction continue, the VIX Index and VIX ETFs are likely to continue rising. Learn more about VIX Index and VIX ETFs with Wall Street Sector Selector’s Free ETF Report!   Disclaimer: The content included herein is for educational and informational purposes only, and readers agree to Wall Street Sector Selector’s Disclaimer , Terms of Service , and Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.