Scott Burrill - Market Notes

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Scott's notes
Scott's Market Notes

Weekly Market Update

Jan 26, 2020

Futures are gapping down in Globex on this somber day.

The theme this week is whether a change of character is afoot in the market and whether the selling will persist towards 3200. Besides price action in the major indices themselves, the term structure of volatility and the shape of the yield curve will also serve as guides.

Indeed, the market is expecting increased, but not abnormal volatility, as implied correlation is now focusing us on macro factors, despite the bevy of notable earnings releases this critical week. For the week, the S&P 500 Option Implied Move is + / - 52 points with a range of 3347.62 to 3243.32.

Despite the Friday sell-off, the Weekly Trend remains up, and the Bias is down.

Potential catalysts are plentiful from the pandemic scare, Chair Powell's Press Conference following the FOMC Meeting, Key Earnings Releases, and the ongoing Senate Trial and usual Tweets.

Updated Levels.

Have a great week.

All the best,

Scott

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