At the beginning of the week, I had speculated that if volatility levels could remain at or below Monday morning's, the Russell 2000 would pass the S&P 500 for the YTD return in their respective ETFs. Though this obviously did not end up being the case during the week, trading on Friday resulted in some revival of the trend we have seen played out over the past 3 weeks.
At its peak during Thursday's broad market selloff, the VIX hit levels not seen since March 16th, and the RVX hit levels not seen since April 2nd. ATM puts for the S&P 500 Index - "Spiders" (NYSEARCA:SPY) and iShares Russell 2000 Index (NYSEARCA:IWM) dropped 45% and 50% respectively Friday, with the SPY still marginally outperforming the the IWM.
On the week, SPY ended nearly unchanged, whereas IWM shaved 2.3% of its recent gains off. With little on today's schedule, watch for trends in commentary and world news over the weekend to determine today's direction.