The S&P 500 is again little changed from the open. The losses on Tuesday do have the SPX lower on the week, currently at 2348. The Nasdaq 100 sees a similar pattern after hitting an intraday high of 5439 on Tuesday morning. The Russell 2000 also is lower on the week, but has seen better action since.
The VIX climbed above 14 for the first time since the very first trading day of the year. It has come back down to 12.81 currently. The VXST, the 9-day Volatility Index, remains at a steep premium to the VIX, up at 13.71. And that is dampened by the weekend effect as the time decay is priced out of the SPX options.
Our traders were mostly bullish coming into the week, but some have reevaluated with this week’s action.
John: I am bearish as long as the S&P 500 futures are trading below the 21-day exponential moving average (EMA) on the daily chart.
Chris: I still see 2325. Sorry if I am a broken record:)
Tony: I love when the NASDAQ and the EuroStoxx50 lead. As of 10 am Central Time, the Nasdaq 100 is only down 18 points this week and the EuroStoxx50 is ahead 9 points. This is not bearish. I remain a roaring bull.
Carolyn: Even though the S&P recently held key daily support and bounced, I am currently anticipating a possible failure under the recent highs due to the 5/13 EMA crossover to the downside on the daily chart, and the recent break of some key lows. I am waiting for sell triggers against the resistance clusters that are currently being respected. If we clear the resistance instead, then I’m wrong on that trade!
Doc: The bull bruised the left toe on his right front leg but he didn’t break it – he has 7 more toes which will carry him just fine. – and his horns are still held high. Use the pullback this week to get long. The uptrend remains intact after a healthy correction.
John’s Shadow Stock System Class starting tomorrow at 9:30AM Central Time