Morning Perspective

The VIX was down near 10% on Monday despite a 1.6% move lower for the S&P500 as I pointed out - this likely would market at least a short term bottom for the market.

... and markets have taken the lead from the VIX and rallied.

Stock futures continue to see most of the heavy upside lifting done in the overnight hours.

Financials were chopping around yesterday, but late in the session they mounted a furious rally, helping to spark a spike higher for the markets.  Small caps are also turning it around after respective a long term support level on Monday.

and $QQQ held support as well and looks poised to close the gap down from last week

again, further uspide will be difficult, if not impossible, if the financials don't participate.  Right now 40 minutes before the open the financials look very strong... and this is a good omen for further upside.

If the recent lows hold, XLF could be in the early innings of a rally back up to trendline resistance, a move that would take it some $1.50 higher from $22 or a 6%+ move.

and the VIX.... we've seen this story before, although the climax earlier this year came at 30 not the mid 20's.  Either way the VIX was falling well before this market found its footing on Monday.  And it's continued decline will lead to higher prices for the market.

Perhaps Brexit will go down as just another 'exit like Grexit.  #Greebola ????

In a little over two trading days the market is heading swiftly back to that shrug of the shoulders mentality.  The Fear of Brexit is morphing back into the Fear of Missing Out.

Have a great day -

Today's Watchlist

Today's Top Reads

Today's Targets

Today's Charts

See you in the chat room!

Known to most as Uranium Pinto Beans, Jason has more than 15 years under his belt of trading stocks, options and currencies. His expertise primarily lies in chart analysis, and he has a strong eye for undervalued stock. Because he’s got the ability to identify great risk/reward trades he usually enjoys taking the path less traveled and reaping the benefits from the adventure.

He is a co-founder of Option Millionaires, and he is best known for his weekly webinars with Scott, as well as his high level training webinars and charts found in the forums.

More Posts by UPB: View All | Private Twitter Feed: Access Now! (For Diamond Members)

Leave a Reply