VIX was slammed in the final hour of the day on Friday to a new all-time low. This leaves the VIX with a Megaphone (reversal) formation. The larger formation that gives an upside target is the Ending Diagonal which suggests a complete retracement of the decline from January 2016.
(Bloomberg) The CBOE Volatility Index touched an all-time low amid a flurry of trading at the close of Friday’s shortened session. Exchange officials advised not making too much of it.
The gauge of S&P 500 options prices, also known as VIX, briefly hit 8.56 at about 14 seconds after 1 p.m. New York time. It quickly bounced back and settled at 9.67.
SPX makes another all-time high
SPX ramped to a new all-time high on what may have been the lowest weekly volume of the year. A decline beneath the two Diagonal trendlines at 2540.00 gives a probable sell signal and suggests a substantial decline may follow.
(CBSNews) U.S. stocks closed near record highs Friday as retailers climbed at the start of the post-Thanksgiving shopping period, while energy companies rose after Bloomberg reported that a group of key oil producers plans to extend cuts in production until the end of 2018.
The Standard & Poor’s 500 index rose 5 points, or 0.2 percent, to close at a record 2,602.42. The Dow Jones industrial average added 31 points, or 0.14 percent, to 23,557. The Nasdaq composite gained 22 points, or 0.3 percent, to close at a record 6,889. Trading was muted after the Thanksgiving holiday and U.S. markets closed early, at 1 p.m. ET.
NDX makes a new high
NDX made a new high on Friday, remaining above the Cycle Top support at 6303.94. The smaller Diagonal trendline and Short-term support are at 6198.56. A decline beneath that trendline may produce a sell signal.
(Reuters) – Technology stocks led the S&P 500 and Nasdaq to record closing highs on Friday, with the S&P ending above 2,600 points for the first time, while Amazon and retail stocks got a boost from signs of a strong start to the holiday shopping season.
The benchmark S&P 500 and the blue-chip Dow Jones industrials posted weekly gains for the first time in three weeks while the Nasdaq Composite posted its best weekly performance since the week to Sept. 1.
The stock market had a half session on what is known as Black Friday, the day after the Thanksgiving holiday and the unofficial start of the U.S. holiday shopping season.
High Yield Bond Index bounces to Cycle Top resistance
The High Yield Bond Index bounced from Short-term support at 183.31, closing just beneath its Cycle Top at 185.90. A break of the upper Diagonal trendline and Short-term support may tell us the rally is over. A sell signal may be generated with a decline beneath the lower Diagonal trendline at 177.00.
(BusinessInsider) – Investors yanked $2 billion from high-yield bond funds over the past week, the fourth straight week of outflows, Bank of America Merrill Lynch data showed on Friday, as they took profits in an asset class that has yielded double-digit returns this year.
With cracks appearing to widen in some emerging markets, notably Turkey, investors booked profits, though outflows were moderated by a strong outlook for global growth.
An index measuring the performance of high-yield debt has delivered 11 percent returns so far this year, outstripping its investment grade and government debt counterparts.
USB rises to challenge Intermediate-term resistance
The Long Bond rose to challenge Intermediate-term resistance at 153.61 this week. There was a small breakout above its previous high at 153.72, so this bears watching in the next week. However, the Cycles Model suggests the period of strength may have passed, leaving USB in a potential decline that may last through mid-December.
