Saturday, June 27, 2015

VDX Updates for SPY, XIV and XLU....06.27.15

Here are the current MoDx views of SPY, XIV and XLU.  Keep in mind these are technical perspectives and reflect how we might expect the markets to work if all things were equal....which is clearly not the case as the Greek situation continues to fester.  Here's a link to Mauldin's spin on the's definitive and exhaustive and is issued by truly one of the smartest guys in the room.
The MoDx (Mosaic version of the VDX) shows that XIV is actually behaving in a more technically aligned fashion than SPY, something we don't see that often (note that the skew in both is bearish) Meanwhile, I've included the XLU (utilities) chart as it represents a high probability buying situation.
HOWEVER, I mentioned in the M3 login page at Friday's close that although the Greek bailout deadline is June 30th, Merkel has stated that a deal MUST BE completed by Saturday night or bad things will happen (yet to be determined).  As such we should expect Monday's open to be volatile and explosive (big range).  Can't say which way it will blow but just a cautionary note for those that like to ride wild moves.