Market Commentary: SPX Today
Summary
- SPX Narrow Band Close: 3932-3985.
- SPX Broad Band Close: 3889-4015.
Greetings all, I'm back from vacation as of Tuesday AM but still shaking off the cobwebs. Without a doubt, it's been over a year since I got out of the house and I had no idea how wonderful that would feel. There was a palpable joy in being out in the sunshine taking walks and being anywhere other than home.
But, you're here for the market outlook. So, this week has presented very much like last week in terms of the volatility, risk, and return profile. However, volatility is contracting and trading ranges are shrinking. So, those "outside days" of last week are languishing into "inside days."
Market IVs are very in-line with the model today. I was excited to see a little VIX pop yesterday that was prime for shorting. Unfortunately for me, I hesitated and left some money on the table there. Yep, still cobwebs. Anyway, today is Quarter End. So, I expect the final touches on the "window dressing" and the rebalancing moves to subside by the end of the trading day. I think we'll get back to some more of the trend moving forward which is toward higher interest rates. At this juncture, that is just a guess but the brief respite may be ending here for rates.
Happy Trading!
Analyst's Disclosure: I am/we are long SPX.
I am an active trader and may take a long or short position in any securities mentioned at any time.
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