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VIX Perks Up As Stock Charts Look Bearish

Published 08/25/2016, 01:16 AM
Updated 07/09/2023, 06:31 AM

The Hoot
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  • Thursday uncertain.
  • ES pivot 2185.33. Holding below is bearish..
  • Friday bias uncertain technically.
  • Monthly outlook: bias lower.
  • YM futures trader: short at 17,670.

Heh - it looks like CNBC must be reading the Night Owl. Right after I mentioned last night that it looked like "another snoozer" on the way, they had a piece today about how the SPX has gone 33 sessions without a 1% move, the most in over 30 years or something like that.

I think it's a combination of summer vacations, Fed gaming, and pre-election hand-sitting. Everyone's waiting for some direction from somewhere and they're not getting it. In the meantime the markets just continue to drift without much direction.

For the record, last night I did mention that "There's a hint of a downward bias in the charts" and that's about what we got with a 66 point drop in the Dow.

So we'll go ahead and take another look at the charts anyway - for whatever much good that does these days.

The technicals

Market index futures: Tonight, all three futures are essentially unchanged at 12:48 AM EDT with ES dead flat.

ES daily pivot: Tonight the ES daily pivot falls from 2185.33 to 2177.25. That still leaves ES below its new pivot so this indicator continues bearish.

Average Points

Tonight is playing out like a re-run of last night. With a continuing lack of direction, there's really very little I can say about the markets tomorrow. I'm not calling 20 or 40 point Dow moves.

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For the record, things are in fact looking a bit on the bearish side, with the VIX perking up a bit on Wednesday but it still isn't anything I feel good enough about to bake into a call. Therefore I continue to call Thursday uncertain. Maybe after Labor Day we'll start to see some action again.

YM Futures Trader

No trade tonight.

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