SPX testing critical resistance...again
Stock-Markets / Stock Markets 2016 Jul 01, 2016 - 03:19 PM GMT
You may remember the Expanded Flat level at 2116.00, representing the November 3 high. The June 8 high slightly overshot it at 2120.55. Well, today’s target happens to be…2116.00 again! You simply cannot make this up. It may slightly overshoot (again), but this may be the most critical resistance that we have seen.
Who’s buying? Retail investors certainly are not. Smart money is not. ZeroHedge reports, “The new normal sure is strange: with the S&P flirting with all time highs, not to mention staging another dramatic V-shaped comeback from the post-Brexit crash which saw S&P futures trade limit down a week ago, investors keep on selling. According to Lipper data, U.S.-based stock mutual funds, which are held by retail mom-and-pop investors, posted cash withdrawals of $2.8 billion over the weekly period ended Wednesday; this was the 16th consecutive week of outflows.”
VIX also has another probe lower. The target is 14.30 to 14.50 in a ninth wave, which is impulsive.
The VIX ETNs are in a similar spot, with VXX potentially bottoming near its Wave [a] low of 13.52.
TNX has gapped down again, but not to an all-time low, yet. It must exceed the Wave [3] low of 13.94 made in July, 2012.
Bloomberg reports, “Yields on 10- and 30-year U.S. Treasuries fell to record lows, defying forecasters who for years have said they would rise, amid signs that Britain’s vote to leave the European Union will curb global economic growth and prevent the Federal Reserve from raising interest rates this year.
Just days before America’s 240th birthday, the U.S. 30-year bond yield dropped as much as 10 basis points to an unprecedented 2.1873 percent, while benchmark 10-year yields slid to 1.3784 percent. They joined a rally in bonds around the globe as some of the world’s biggest investors, including BlackRock Inc., Guggenheim Partners and Vanguard Group Inc., said the Brexit vote means subdued growth and lower yields for years to come.”
Note that futures yields are lower, while futures NAVs are higher than the cash market.
Regards,
Tony
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