The S&P hit the expected move for the week on the back of financials.  Surprisingly, tech doesn’t participate.  Today it seemed like all of our trades were firing on all cylinders with back ratio spreads in XLF working out spectacularly and big tech shorts seeing results.  The next 2 trading days are critical.  Here’s what to look for…

Enormous Short-Squeezed Bullish Breakout, or Bull Trap? That’s what we’ll be discussing and addressing positions in tonight’s video.  We have a very similar theme to all of last week yet the market did not yet break lower.  In tonight’s video, Corey updates your critical levels and highlights the make-or-break bearish or bullish element at play in the market right now for this week ahead.

The edge of normal?–SPX holds it together and pulls out another week inside the Expected Move SPX Expected Move–last week– 93.88 (expected)–next week– Volatility Box and Sector Rotations–SPY/Bonds–SPY/Dollar–SPY/Gold Big Tech getting frothy–AMZN–FB – vol skew flips–MSFT Bond watch! Do not get lulled to sleep–is ain’t no quiet market!–Volatility is alive!–VVIX, Vol Futures

We’re still at the upper Value Area Extreme of the Profile along with the weekly SPX Expected move – both of which point to higher odds of selling ahead.  But in tonight’s video, Corey highlights the higher probability but advocates hedges and preparation in the event bulls break through 3000 in the SPX to carry stocks higher and what might happen then.  Be prepared for the bearish outcome but plan carefully for the bullish breakout should we see it occur next week instead.

For the third time in three weeks the S&P is at the top of the range of the volatility box. This is a crucial point in the market. The SPX all week has been skirting the top edge of the expected move for the week. Our last gravity point is a stone throw away. Don’t be surprised if this happens next…

We’re back into a familiar situation into an overbought level that suggests a short-term sell-off in price this week – and we may be seeing it begin in today’s session.  In tonight’s video, Corey highlights how the Volume Profile is again flashing an advantageous “sell signal” and what targets for success – or stops – are for the current scenario.

Markets explode higher led by the Russell 2000. However, we still remain inside the volatility box in myriad of products. Here’s the level you want to watch for a breakout…

Da Bears are everywhere!–Initial jobless claims – 36 million and counting–Retail Sales-16.4%, total spending down 89.3% YoY–BBY, JWN, BBBY, COST, WMT, KR–GDP could decline by 42% in the second quarter, according to the Atlanta Fed Monsters of Tech5.8*FB+6.4*AAPL+12.7*MSFT+GOOGL+AMZN–tech weak and threating to break apart–sector rotations are reversing–RUT, XLE, XLF, and Tech–if tech goes, we all go… The range is still with us…–the volatility box–the longer we are in the range the more violent break–Bonds–Gold–Index/Equities–Dollar Bonds showing signs of life SPX Expected Move–last week– 79.60 (expected)–next week––11 out of the last 18 weeks have seen moves OUTSIDE the EM

We’re still carefully watching and planning open and future trades off the 2900 level in the SP500 with a bearish outcome likely, but we’re offering bullish hedges in strongly trending stocks making new highs as a way to protect your portfolio – or take advantage – of a surprise bullish outcome in the near future. 

The S&P 500 broke below and closed beneath this week’s expected move.  This leaves us with a critical day in the markets tomorrow and Friday.  If the markets close the week outside the expected move to the downside it would be a strong bearish signal.  Let’s look at a few other factors to take into consideration…