Technical Snapshot Key Takeaways
- The equity indices were mixed on Monday. All the
indices initially gapped lower, then retraced their early session losses. The
S&P closed largely unchanged, the Nasdaq and Russell closed higher, while the Dow finished lower. The S&P and Nasdaq
reversed a portion of their gains at their respective areas of overhead
resistance, while the Dow and Russell finished well below their next
respective areas of resistance. Daily trends on the S&P and Russell
are moving sideways, while the Nasdaq remains lower and the Dow remains
higher. Momentum readings across all indices are confirming price action, moving
up toward resistance alongside price.
- The Volatility Index (VIX) finished Monday's
session higher after breaking above both of its initial overhead
resistance ranges, then reversing its gains below its next level of
resistance from 27.65-26.45. As price reversed its gains, it retraced
toward its newly formed support range from 20.50-19.65. A continued move
lower and break below 19.65 would likely lead to a test of the 17.75-17.10
support range below. A move lower would likely coincide with continued strength
in equities. Conversely, if price holds support and moves higher, it will likely
begin making its way toward the 27.65-26.45 resistance range above,
followed by 29.65-28.65. A move higher in the VIX would likely result in
renewed selling pressure in equities.
- S&P 500 GIC Sector Rankings (12-Week:
Strongest-Weakest): [1] XLE (Energy), [2] XLB (Materials), [3]
XLI (Industrials), [4] XLP (Consumer Staples), [5] XLU (Utilities), [6]
XLRE (Real Estate), [7] XLV (Healthcare), [8] XLC (Communication
Services), [9] XLY (Consumer Discretionary), [10] XLF (Financials), [11]
XLK (Technology)
...