Wednesday, February 17, 2016

Ponzo Updates for SPY, VIX and TLT....02.17.16

This week's gander at the market indices offers confirmation of yesterday's analysis of current stop dynamics and suggests waning volatility, a narrow range bond environment and a strengthening equity market.  Of course this could all fall apart in a heartbeat with major terrorist activity or ?.
With earnings season largely behind us the anticipation and potential selling panic of dismal guidance is muted and traders are looking for the next catalyst to drive momentum.
We still have that event horizon crash scenario looming on the SPY just in case you're thinking we were All Clear.
Note that the corresponding crash scenario seen in the VIX update last week has now disappeared.