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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iShares Russell 1000 (IWF) Tags All-Time High

The iShares Russell 1000 (IWF) closed in positive territory for the 3rd-straight day after trading to a fresh all-time high of $187.43. Uncharted territory and lower resistance at $187-$187.50 was cleared but held. A close above the latter would signal additional momentum towards $188.50-$189.

Near-term and rising support is at $185-$184.50. A close below the latter would be a slightly bearish signal with additional backtest potential towards the $182.50-$182 area.

RSI remains in an uptrend after clearing lower resistance at 65-70. A close above the 70 level could signal a retest towards 75-80 with the latter representing the overbought monthly peak from January. Current support is at 60-55. A close below 50, and a level that has been holding since mid-October, would be a bearish development and signal additional weakness towards 45-40.

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Bullish Action in the VIX

The S&P 500 Volatility Index ($VIX) fell for the first time in 3 sessions despite tagging a midday high of 15.39. Upper resistance at 14.50-15 and the 200-day moving average was breached but held for the 2nd-straight session.

The fade to 13.75 afterwards and close below prior and upper support at 14-13.50 was a healthy signal volatility is easing and may have peaked. A close back below the 13 level and the 50-day moving average before week’s end would be a more bullish development and signal a possible return to all-time highs for the market.

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TLT Holds 50-Day MA

The iShares 20+ Year Treasury Bond ETF (TLT) was down for the 2nd-straight session after tapping a low of $139.78. Near-term and upper support at $140.50-$140 was breached and failed to hold. A close below the former and the 50-day moving average would be an ongoing bearish signal with downside risk towards $138.50-$138.

Current resistance from late October remains $141-$141.50.

RSI is in a downtrend with support at 55-50. A move below the latter would signal additional weakness towards 45-40. Resistance is at 60 and the November peak.

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