Equities tried and failed to hold support last week, but neither has a capitulative event occurred. It still ‘feels’ like price is on the edge — at once oversold, yet not broadly so and more negative news flow could easily hurtle us towards those as yet rising 200-day moving averages.
For the week, the S&P 500 fell another -1% and the VIX is beginning to reach a bullish stretch from its intermediate-term moving average. With European news in flux, retail reports tomorrow, and Fed minutes due Wednesday, it should be a most instructive week and I have further derisking on my mind.
[Week 20 Calendars: Economic | Reporting]
Source: Mrkt_Commentary** subscription service; prior weekly posts.
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