June 11 Stock Market Preview: IWM extinguished early hope that a big rebound was coming as it rejected at key resistance around the 289 area. VVIX and the VIX both gave early warnings that not all was well, with VVIX making a new market pullback high intraday at 109.22. The VIX closed over 22.22, a higher close than on Tuesday, increasing the odds of a tag of 25. After today’s action, and with PPI in the morning, do we have any clarity yet regarding the next big move?

June 10 Stock Market Preview: Early strength turned into new lows for SPX and QQQ today, though IWM did show divergent strength, closing higher than Monday’s close. The VIX surpassed the 23 strike, getting fairly close to the upper edge of where GEX has indicated the VIX may go at the 25 strike. With CPI tomorrow, uncertainty remains, so let’s take a look at what we’re watching.

June 9 Stock Market Preview: Indices were indecisive today, closing below key resistance despite the VIX deflating back into the 18s. Most of the strength was in semiconductors, with other sectors ranging anywhere from slightly positive to negative. Not strong showing. With bullish and bearish possibilities still intact, what additional clues popped up today to help us navigate tomorrow’s action?

June 8 Stock Market Preview: Divergences that we’ve noted for days were vindicated with a sharp selloff Friday, now reaching levels demanding a discussion regarding risk/reward of a rebound versus further downside. What are we seeing as we look ahead?

June 5 Stock Market Preview: Rotation saved the day on Thursday, with beaten down stocks like WMT broadly rising while semiconductors and QQQ stayed red. The Dow and IWM diverged positively, similar to the topping process in late January/February. Daily charts still look bullish, though indices closed below key resistance levels. What comes next?

June 4 Stock Market Preview: Weakness was visible across the board today, except for the semiconductors. AVGO seems to have taken care of that issue, gapping down after hours on an earnings report that apparently wasn’t amazing enough relative to the lofty expectations leading into the report. SPX closed below key HMA support, giving us the best shot in 2 weeks to see a downside move unfold.

June 3 Stock Market Preview: Early red turned into modest green as indices rallied around the crazy move higher in semiconductors. The VIX was largely unphased, trending lower from today’s gap up, but not closing lower than Friday’s low at 15.22. The trend higher seems to continue without interruption, but what would be the first levels lost to indicate a potential turn?

June 2 Stock Market Preview

June 1 Stock Market Preview: A few days can seem like an eternity as indices continue playing games around incremental new highs while VIX divergences are building. How much higher can indices go? The answer is “as high as they want,” but we are entering territory where the odds of continuation without a pullback seem low. Let’s take a look at some levels we’re watching.

May 29 Stock Market Preview: Indices look bullish as they continue pushing higher, but we are nearing the SPX 7600 target that we feel may represent a temporary resistance area. What kind of pullback can we see from 7600? Will we get one? Let’s look at the bigger picture across other indices to give us additional clues.

May 28 Stock Market Preview: Today’s gap up turned red as QQQ once again rejected off of the upper weekly Keltner channel. SPX is still indecisive and the VIX is slowly drifting toward 16. Semiconductors were mixed, with MU attempting to reach 1000 and failing, with others looking solidly negative. Is this just another reset opportunity before the next leg higher, or are bulls about to be reminded what a 2-way market looks like?

May 27 Stock Market Preview: Indices gapped up as indicated by futures over the extended weekend, with incremental additional upside happening in the cash session. DIA was the sole major US index holdout, dropping after making a new high last week. The VIX was also higher. SPX hasn’t reached the 7600 level discussed in last night’s newsletter, so where does the market stand in terms of a pullback in light of divergences emerging today? Let’s take a closer look.

May 26 Stock Market Preview: Bears have wasted several opportunities to reverse the market as bulls charge ahead at each questionable zone. Futures are higher yet again as we conclude the extended Memorial Day weekend, but can it last? Let’s look at some potential upside targets and some reasons why we think it may be a good idea to start looking for some protection.

May 22 Stock Market Preview: Indices struggled for a large part of the morning, but rallied in the afternoon to retest key overhead resistance, initially rejecting at those levels. The VIX got crushed to sub-17 levels. Are bulls in the clear post-NVDA, or are we nearing another turning point lower?

May 21 Stock Market Preview: NVDA earnings are out, and the markets initial reaction is only modestly negative. With the looming lack of clarity regarding the market being up or down in the morning, what are GEX and the charts saying?

May 20 Stock Market Preview: As markets approach VIX expiration in the morning and NVDA earnings after hours, a variety of scenarios lay ahead that may involve more volatility, whether higher or lower. What factors are we considering as we navigate Wednesday?

May 19 Stock Market Preview: Indices dropped very modestly today, with IWM and QQQ taking the brunt of the selling, with SMH contributing the largest to QQQ’s decline. A tight lid is being kept on the VIX, for now, which barely moved even as indices were at lows. Is change afoot that favors the downside, or are we about to retest highs?

May 18 Stock Market Preview: Friday saw an increasingly rare day of weakness, both in terms of price action as well as GEX. IWM closed below key support while SPX and QQQ are at important support. The VIX has a setup that would justify a spike, in theory. Is the current weakness in futures a sign of a drop that will happen just as one-sided and fast as the rally, or is this a bear trap before new highs?

May 15 Stock Market Preview: SPX is reaching GEX extremes while QQQ is reaching upside chart extremes. Meanwhile, the VIX is maintaining the 17 strike. Can we finally see a correction, or is that term completely extinct? Read further for scientific insight.

May 14 Stock Market Preview: QQQ and SPX made new highs today, though IWM was negatively divergent. The VIX is holding key support as well. What levels are we watching as we enter the back half of OpEx week?