This was expected, after all of us intellectually bearish traders capitulate, the market pulls back. We’re at very interesting technical levels and heading into August, which as some of us remember was just a slippery slope downward last year. Being OPEX today we might have just experienced some profit taking after the nice little run-up. On the other hand we might be seeing a technical rollover from 1375. Monday will clarify things a bit.
The VIX surprised me today closing up + 5.31% at 16.27 but well off it’s tagging of 17.
Gold (GC) didn’t want to follow the market and closed up + 0.26%
The S&P (ES) closed – 0.98%
Europe: CAC40 – 2.02% and with little surprise the FTSE falls in lign with the S&P down – 1.09%
The market can be irrational longer than I can remain solvable and the focus has switched back to the US.
Spanish Spreads are hitting record highs and today’s passage of Frances’ 75% wealth tax ou “contribution esceptionnelle” are being ignored. Both of those headline risks are being interpreted differently than I would have expected. Even the US employment numbers are being ignored, with hope for QE overtaking employment weaknesses which should negatively impact the market.
EURUSD + 0.16%
Gold (GC) + 1.15%
Oil (CL) + 1.51%
S&P Futures (ES) + 0.44%
CAC40 + 0.77 % FTSE +0.49%
It looks like we’re going to open optimistic.
The CBOE Put/Call Ratios are updated, here. We’re at extremely low ratios. On the Index side a .89 print has only happened 9 other times since June 2011. OPEX is tomorrow.