Spider Small-Cap 600 ETF (NYSE: SLY) Up Four-Straight Seasions

The Spider Small-Cap 600 ETF (NYSE: SLY) extended its winning streak to four-straight sessions following the intraday push to $96.37. Prior and lower resistance from early March at $96-$96.50 was breached but held. A close above the latter would signal additional upside towards $97.50-$98.

Support is at $95-$94.50 followed by $93.50-$93.

RSI (relative strength indicator) is in an uptrend with lower resistance at 55-60 getting cleared and holding. A move above the latter would suggest additional strength towards 65-70 and levels from mid-March. Key support is at 50.

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Checking on Volatility

The iPath S&P Vix Short-Term Futures (NYSEArca: VIX) snapped a three-session losing streak despite testing an opening low of 17.35. Near-term and upper support at 17.25-16.75 was challenged for the second-straight session. A close below the latter would indicate additional weakness towards 16-15.50.

The bounce to 18.40 afterwards cleared but failed to hold lower resistance at 18-18.50. A move above the latter would suggest a retest towards 19.50-20.

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GameStop Corp. (NYSE: GME) Zooms 51% on Short Squeeze

Shares of GameStop Corp. (NYSE: GME) zoomed 51% following a trading halt as short-sellers continue to get hammered. The short interest in GameStop reached 138% of the shares available for trading last week, and continues to drive the stock up for its massive short squeeze.

 
The company recently stated its holiday sales were down 3.1% but shares still rose a stunning 100% last week and were primed for a short squeeze, in which short sellers faced with high borrowing costs and accumulating losses are forced to buy shares to cover their bearish bet.
 

S&P 500 Volatility Index ($VIX) Still Looking to Crack 20

The S&P 500 Volatility Index ($VIX) had its 3-session winning streak snapped despite tagging an opening high of 24.47. Current and lower resistance at 24.50-25 was challenged but held for the 2nd-straight session. A close above the 25 level would suggest further upside towards 27.50-28 and the 200-day/50-day moving averages which just formed a death cross.
 
This technical pattern is typically a bearish development that signals lower lows. This would be, however, a bullish signal for the market and the continued assault on record highs.
 
Near-term and upper support at 22.50-22 was also breached but held on the late day fade to 22.06. A close below the 20 level and the monthly low at 20.28 would be important bullish signals for the market. This would confirm the death-cross pattern for lower lows with additional gap-down and backtest potential towards the 17.50-17 area and levels from late February.

Monday’s (8/17/2020) earnings announcements (JD, CWCO, BEST…)

Monday’s (8/17/2020) earnings announcements:

Before the open: Consolidated Water (CWCO), Eagle Point Credit (ECC), Gulf Resources (GURE), JD.com (JD), Milestone Scientific (MLSS), Niu Technologies (NIU), SWK Holdings (SWKH)

After the close: Americas CarMart (CRMT), Best (BEST), China Biologic Products (CBPO), Dolphin Entertainment (DLPN), Edison Nation (EDNT), Fabrinet (FN), Progressive Care (RXMD), Social Reality (SRAX)

Economic News:

NAHB Housing Market Index – 10:00am

Checking in on the VIX

The S&P 500 Volatility Index ($VIX) fell for the first time in 3 sessions despite testing a morning peak of 40.32. Current and lower resistance at 40-40.50 was breached but held with a move above the latter signaling additional strength towards 42-42.50.

Upper support at 35.50-35 was challenged but held on the afternoon fade to 35.53. A close below the latter would be a renewed bullish signal for a retest towards the 32.50-32 area.

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