Summary:
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US benchmarks sitting on sizable gains
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Volatility index trying to move back lower
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2945 remains key level for S&P500
After some selling during Tuesday’s session, US stock markets are called to begin on the front foot this afternoon with gains seen across all major benchmarks. There’s not really been any clear catalyst for these gains but the strong performance on the day so far in Europe is no doubt helping to boost sentiment.
There’s been some impressive gains in European bourses so far today with France and Italy leading the charge higher. Source: xStation
One key market to keep an eye on is the volatility index (VOLX on xStation) which trades inversely to the S&P500. The so-called fear gauge is often seen as a proxy for and has been trading at elevated levels for much of the month. However, there are some signs that this could be subsiding and if we get much more selling in the VOLX then the backdrop for stock market gains will be more sanguine.
The volatility index is trading lower today and threatening to break below the 61.8% fib retracement of its advance at 17.31. Source: xStation
Tuesday saw a bearish engulfing candle print, but today’s gains threaten to engulf that candle in a bullish manner. Highs of 2932 the first level to watch but a break above 2944 needed for an end to the recent range. MACD turning higher. Source: xStation
