We are Neutral for Today, VX during Roll should continue to come under pressure.
Should the VX break 16.90 we could see a quick flush down to ~16.50s.
Ahead of Jackson Hole, there will be an effort to continue the Trend - which
remains Bullish for now. We anticipate a blow off ahead of VX roll.
The FED has a high probability of announcing tightening in varying forms - even
as the Commodities Complex is coming under duress - Lumber was off 7% yesterday.
Gamma for AAPL will play an important role for the large number of Calls purchased
when AAPL was trading 141s.
Bonds are pulling back ZN/ZB selloffs will provide a tailwind to Equities as will NQ Bank.
Opening Breadth on Friday's usually provides a solid trend, Friday's are generally NOT a
consolidation.
Bias is to Upside for Index Complex.16.68 and then 16.49. The VX is presently
trading -2.57% with the VX Curve in a well defined Contango.
15045.90 is the upper Limit should 14,976 be broken.
14.672.80 is the lower Limit for Today unless it breaks - 14,540.75 would be
lower Support.
NQ may well trade this entire range over the coming week into VX Settlement.
VXN will provide guidance as Support remains 19.15