General Market commentary

Market closed down a tad on the day. As indicated in yesterday’s market update, the general market indeed experienced elevated volatility. This can be seen on VIX readings as well.

Quantative market model signal

Midterm trend: moderately bullish
Midterm risk: high

Featured charts

VIX

VIX spiked higher and closed weak yesterday. Today’s effort to contain VIX didn’t make much progress. Recently VIX has been rising together with SPX, further confirming CLCapital’s thesis of elevated volatility.

USD

USD tried to spike higher today but sold off later in the day. USD weakness is one of the key drivers of the market rally. If USD gets any up legs, the general market will be under pressure.

WTIC

Crude oil is weakening after a strong recovery. The weakness is also confirmed by “recovery stocks” like JETS/XLE. This is a warning sign for the general market. However, if you are positioned in tech stocks, then you should feel the money is rotating into your hands.