June 4 Stock Market Preview: Weakness was visible across the board today, except for the semiconductors. AVGO seems to have taken care of that issue, gapping down after hours on an earnings report that apparently wasn’t amazing enough relative to the lofty expectations leading into the report. SPX closed below key HMA support, giving us the best shot in 2 weeks to see a downside move unfold.

June 3 Stock Market Preview: Early red turned into modest green as indices rallied around the crazy move higher in semiconductors. The VIX was largely unphased, trending lower from today’s gap up, but not closing lower than Friday’s low at 15.22. The trend higher seems to continue without interruption, but what would be the first levels lost to indicate a potential turn?

June 2 Stock Market Preview

June 1 Stock Market Preview: A few days can seem like an eternity as indices continue playing games around incremental new highs while VIX divergences are building. How much higher can indices go? The answer is “as high as they want,” but we are entering territory where the odds of continuation without a pullback seem low. Let’s take a look at some levels we’re watching.

May 29 Stock Market Preview: Indices look bullish as they continue pushing higher, but we are nearing the SPX 7600 target that we feel may represent a temporary resistance area. What kind of pullback can we see from 7600? Will we get one? Let’s look at the bigger picture across other indices to give us additional clues.

May 28 Stock Market Preview: Today’s gap up turned red as QQQ once again rejected off of the upper weekly Keltner channel. SPX is still indecisive and the VIX is slowly drifting toward 16. Semiconductors were mixed, with MU attempting to reach 1000 and failing, with others looking solidly negative. Is this just another reset opportunity before the next leg higher, or are bulls about to be reminded what a 2-way market looks like?

May 27 Stock Market Preview: Indices gapped up as indicated by futures over the extended weekend, with incremental additional upside happening in the cash session. DIA was the sole major US index holdout, dropping after making a new high last week. The VIX was also higher. SPX hasn’t reached the 7600 level discussed in last night’s newsletter, so where does the market stand in terms of a pullback in light of divergences emerging today? Let’s take a closer look.

May 26 Stock Market Preview: Bears have wasted several opportunities to reverse the market as bulls charge ahead at each questionable zone. Futures are higher yet again as we conclude the extended Memorial Day weekend, but can it last? Let’s look at some potential upside targets and some reasons why we think it may be a good idea to start looking for some protection.

May 22 Stock Market Preview: Indices struggled for a large part of the morning, but rallied in the afternoon to retest key overhead resistance, initially rejecting at those levels. The VIX got crushed to sub-17 levels. Are bulls in the clear post-NVDA, or are we nearing another turning point lower?

May 21 Stock Market Preview: NVDA earnings are out, and the markets initial reaction is only modestly negative. With the looming lack of clarity regarding the market being up or down in the morning, what are GEX and the charts saying?

May 20 Stock Market Preview: As markets approach VIX expiration in the morning and NVDA earnings after hours, a variety of scenarios lay ahead that may involve more volatility, whether higher or lower. What factors are we considering as we navigate Wednesday?

May 19 Stock Market Preview: Indices dropped very modestly today, with IWM and QQQ taking the brunt of the selling, with SMH contributing the largest to QQQ’s decline. A tight lid is being kept on the VIX, for now, which barely moved even as indices were at lows. Is change afoot that favors the downside, or are we about to retest highs?

May 18 Stock Market Preview: Friday saw an increasingly rare day of weakness, both in terms of price action as well as GEX. IWM closed below key support while SPX and QQQ are at important support. The VIX has a setup that would justify a spike, in theory. Is the current weakness in futures a sign of a drop that will happen just as one-sided and fast as the rally, or is this a bear trap before new highs?

May 15 Stock Market Preview: SPX is reaching GEX extremes while QQQ is reaching upside chart extremes. Meanwhile, the VIX is maintaining the 17 strike. Can we finally see a correction, or is that term completely extinct? Read further for scientific insight.

May 14 Stock Market Preview: QQQ and SPX made new highs today, though IWM was negatively divergent. The VIX is holding key support as well. What levels are we watching as we enter the back half of OpEx week?

May 13 Stock Market Preview: The first signs of weakness emerged today, with semiconductors falling sharply and the VIX spiking. This move didn’t last long, and by the end of the day, indices staged a recovery that left hopeful bears cursing. Is this the beginning of the much-awaited pullback, or just a necessary minor reset before the next bullish move higher?

May 12 Stock Market Preview: Will CPI and PPI over the next two days be able to turn the tide of this rampaging bull market? OpEx week is historically bullish, but perhaps there’s some call premium to kill as we enter the back half of the week. It’s too early to say if inflation data will matter with this kind of momentum, but we are watching GEX and indicators closely for signs of a tactical turn.

May 11 Stock Market Preview: Indices are entering OpEx week at all-time highs, and QQQ has reached the upper weekly Keltner channel without a pullback, a pathway I find surprising. While some divergences exist, we need to consider other possibilities as well.

May 8 Stock Market Preview: Semiconductors finally showed weakness today, though rotation allowed out-of-favor software stocks and others to fill the void, muting what might have otherwise been a bloodbath for the Nasdaq. IWM led the way down, and the Dow wasn’t far behind. Was today just another small, red candle in this parabolic move higher, or do we have the beginning of a pullback?

May 7 Stock Market Preview: VIX divergences are beginning to show as indices continue on a relentless trajectory toward what might be a meaningful top. Yesterday’s note about the weekly QQQ Keltner target appears to be accurate, with QQQ not far from 708. What might we expect from SPX, and how meaningful do we expect the top to be in terms of further upside potential?