Market Snapshot Thursday 3 March 2016

Adding strength to our "SPX 2000" theme is the VIX resuming its teen status as the risk averse are dissuaded from insuring falling stock prices.



VIX Daily

The questions now become, will buyers overwhelm sellers at SPX 2000 and 2060, push price into new highs, above 2120, and resume a broad market uptrend?

SPX Daily



Available evidence suggests "yes" assuming risk assets can make peace with their common foes; a stronger US dollar and rising treasury yields.

DXY Daily

US 10 Year (Yield)

Bulls, with the obstacles of SPX 2000 and 2060 to overcome, are not out of the woods yet and can expect a fight from institutions will millions of dollars bet on bear a market.

Happy trading.

Markets 29 Feb - 4 March 2016

We ended last week with optimism for a run at SPX 2000 where we were looking for an early Friday bounce at 1940.

SPX 60M

The issue now is less whether we can participate in the intermediate uptrend to SPX 2000, but whether the current uptrend holds at a level in the vicinity or fails and resumes the broader market and economic downtrend.

SPX 60M

The most compelling argument for a rally and resumption of the intermediate uptrend, if 1930 fails, is SPX 1910 (above chart) as price moving into the 1800s will threaten the upward drive.

Happy trading.