Key insights
- The analysis suggests a bullish short-term outlook for US equities, contingent on the S&P 500 futures holding above 6800-6830. A stable VIX in the low 20s indicates reduced hedging activity, supporting a potential grind higher. Key levels for Nasdaq, Dow, and Russell 2000 are also provided, reinforcing the overall positive sentiment.
Holding above and staying above 6800 to 6850 suggests retesting 6900+ as a function of blending the medium and short term trend
Buyers now likely want to hold 6800 to 6830 if it starts printing back below 6850 at the opening hour
Sellers are still fairly active but seeing suboptimal conditions to press for lower prices. This can be further ensured by holding above 6825/6830 which further discounts measured moves and inch towards a slow grind higher if not outright momentum
VIX continuing its hold at the very early 20’s suggests hedging is softer heading into the weekend. So, it’s not exercising too much reflexivity for risk management and keeping it relatively straight-forward
Additional reference points with same thesis: $QQQ 610+, $YM 48000+, $RTY 2600-2630+