VIX had an inside week, closing above Short-term support at 11.20 but beneath its Intermediate-term resistance at 11.81. An aggressive buy signal may be forthcoming should the VIX rally back above its Intermediate-term resistance. The breakout above its consolidation area may produce a slingshot move.
(CNBC) A striking stat about the CBOE Volatility Index provides yet more testimony to the anomalous quiet seen in the equity market.
In all the sessions since Jan. 4, the index known as the VIX has not risen above 13.28. The VIX hasn’t previously stayed below 13.5 for as many straight sessions since before the financial crisis.
“The markets are literally gorging on risk, and the VIX tells that story,” Max Wolff, strategist at 55 Capital, wrote to CNBC on Thursday.
SPX has its first weekly loss in seven
SPX had a loss for the week after six straight weeks of gains. A decline beneath its weekly low at 23574.54 and Short-term support, both near 2320.54, gives the SPX an aggressive sell signal. A break of those supports may send the SPX to its cycle Bottom at 1888.33, or possibly lower.
(Reuters) Crude oil resumed a sharp decline and global equity markets rose on Friday after a robust U.S. jobs report drove home the strength of the world’s biggest economy and set the stage for the Federal Reserve to raise interest rates next week.
U.S. employment increased more than expected in February and wages rose steadily, providing the Fed a green light to raise rates at a policy-setting meeting on March 15.
Nonfarm payrolls rose by 235,000 jobs as the construction sector recorded its largest gain in nearly a decade due to unseasonably warm weather, the U.S. Labor Department said.
NDX has a flat week
NDX made a sideways consolidation through Thursday, with a Jobs market bounce on Friday. There was no new high. NDX is still extended, so a breakdown may not register until it declines beneath Short-term support at 5234.05. However, the Cycles Model suggests continued weakness ahead.
(DailyNews) U.S. stocks are moving higher Friday morning after a strong February jobs report. Technology companies are rising more than the rest of the market, but renewed losses for energy companies are limiting the gains overall. Federal Reserve is widely expected to raise interest rates next week following the strong employment report.
KEEPING SCORE: The Standard & Poor’s 500 index rose 4 points, or 0.2 percent, to 2,368 as of 11:15 a.m. Eastern time. The Dow Jones industrial average advanced 16 points, or 0.1 percent, to 20,874. The Nasdaq composite added 14 points, or 0.2 percent, to 5,853.
High Yield Bond Index tests Short-term support
The High Yield Bond Index declined beneath its Cycle Top resistance at 170.87, testing Short-term support at 165.77. A break beneath the Diagonal trendline and Short-term implies a complete retracement of the rally may occur. The Cycles Model suggests weakness ahead.
(Barron’s) Junk bonds are getting hit with a perfect storm of headwinds this month: Rising rates, falling oil prices (about 15% of junk bonds are tied to oil), and redemptions from high-yield funds.
Junk bonds had beat Treasuries for the last eight months in a row, tying prior records, but that’s not the case so far in March.
The high yield sector’s two big exchange traded funds, the iShares iBoxx $ High Yield Corporate Bond Fund (HYG) and the SPDR Barclays Capital High Yield Bond ETF (JNK) are both down about 2.5% so far in March, while the iShares 7-10 Year Treasury Bond ETF (IEF) is down about 1% and the iShares 20+ Year Treasury Bond ETF (TLT) down close to 2%.
Is USB completing its decline?
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