VDX Updates and Weekend Reading....07.09.16

The VDX updates indicate TLT's extreme overbought status and the VIX's initial penetration of the mid term support levels (although still rated NEUTRAL). Given the substantial rebound form the BREIXT "crisis" its clear that for now traders are discounting the effects of the vote although new potential defections may raise the uncertainty factor in the coming months.
The stellar employment report helped push the markets on Friday and its not unreasonable to expect new all time highs in the major indices.
What's surprising is the corresponding rise in TLT (at another all time high Friday) as its unusual for SPY and TLT to run in lockstep.  What we are likely witnessing are 2 different camps of risk management...one buying equities and the other buying treasuries for the yield..
For further insights check out>
Schwab's Weekly Trader's Outlook
State Street's Mid-year Outlook