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Interesting Close in the Markets - Trading Journal (11.19.20)

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@mawit07
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The day started out quiet and SPY traded within a range. By 3:30pm the SPY had drifted sightly lower only to begin selling off like mad. By close of session SPY had drop more than a tune of 1%. This is not for certain the reason but VIX monthly expiration was today and markets were in overbought area since its run up after the elections.

With the monthly expiration removed VIX has slight pop since the down trend that started two weeks ago.

However the VIX term structure is still in cantango with December much lower than the rest of the months. Worth noting though most months are elevated at similar levels so if December VIX futures rises from here the whole chart can lead to backwardation.

When looking at the markets for the year SPY is basically back near all time highs but at that level it is really still within a range. Since the VIX recently rose questions mount if the current SPY uptrend has turned down and has become a false breakout? If so SPY can continue lower and fall back into a range.

Posted Using LeoFinance Beta