In our weekend edition of Daily Technical Market Recap, Wayne discusses Friday’s market moves as well as what we might expect in the near-term from the various indexes and specific stocks. Another big earnings week is upon us with 100+ companies set to report. Please click the link to watch the video and enjoy the Super Bowl…Gooooooo ___________?
As mentioned in our Weekly Research Report published 2/3/19, the VIX closed beneath its 200-DMA on Friday and as hedges were evacuated going into the weekend. Is there more room to the downside for volatility or will we get another quick bounce as the S&P 500 seems overextended and fund flows suggest the market’s move may not be buyer-satisfied? Time will tell. Here’s an interesting historic chart (from @metricsmaestro) of the VIX Index to file in your resource library.
What we can gather from the chart is that markets desire complacency and efficiency, signified by the mode level of the VIX around 12.50. The VIX has more closes 12-13 than any other level. The only reason why the median VIX close is in the 17 range is due to the lack of VIX closing levels below 12. But if you strip out the VIX closes, which are few, 25 and above the median drops to the 13 level. For simplicity sake, the VIX finds its greatest gravitational pull toward 13.
Again, please review our Technical Market Recap!Tags: SPX VIX SPY DJIA IWM QQQ SVXY TVIX UVXY VVIX VXXB