Weekly Trends are now Down in the Major Markets.
Time will tell whether recent trend changes become more impactful longer term. While the impact is reasonably muted thus far, Markets are clinging to every tweet for hints to resolution of the US-China Trade War. Once again, in this shortened, month-end week, Markets are awaiting resolution to the conflict with no end to anticipated volatility. The SP500 Weekly Option Implied move is + / - 47 points or an upper edge of 2873.33 and a lower edge of 2778.79.
As we consider scenarios, focus turns towards Bonds, risk-off REITs, Utilities, the Russell 2000, and the term structure of Volatility.
The Weekly Magnet sets bias.
Should the SP500 close below the lower edge of the weekly implied move, we need to reconsider the events that transpired late last year where Markets gyrated within a 200 point range.
Have a great week.
All the best,