Futures dip and fear spikes once again as little boys play with their toys. North Korea firing a missile over Japan has global markets on edge. Gold, VIX, and bonds are higher in response to another news cycle.
ES Futures Dip
S&P futures were off much more during the Globex session turning higher from its low at 2422.88 shortly before 5:00 AM Eastern. SInce then we’ve pushed higher, currently hovering at -12.50 (+/-). More than likely this latest display of stupidity will wane and markets will resume the current cycle. 2400.00 is a huge support zone. (VBP)
VIX Gold and TLT Spike with Fear
The news cycle will once again be about North Korea. Just when you thought cooler heads would prevail, another spike in VIX sends markets reeling. Gold and TLT are higher this morning in response. GDX and miners, in general, are green this morning.
The 1300.00 level is support for now, as price action signaled bullish intentions last week. 1373 is the next target, as seasonality further dampens bullish activity in the markets.
SPY 243.40 (+/-) VBP Support
For the time being, price action is contained inside this support zone (blue shading) at 243.40 (+/-). If profits are swept early, there is a possibility that price will bounce here. A loss of this zone will point to a more significant pullback.
My gut tells me the markets will shrug off this nonsensical news cycle and bounce. That said, price is the only thing that can tell us what “the Armani’s” have in mind. If their intentions are bearish, we’ll know soon enough.
Happy Tuesday,
Vinny