Dollar and Bonds Have Set Up Nicely

That's despite the traction-less action in the S&P.

Technical Edge — 

• NYSE Breadth: 33% Upside Volume

• NASDAQ Breadth: 24% Upside Volume

• VIX: ~$30

For the second time in three sessions, the market fought back a tough decline in the indices. 

At one point on Tuesday, we had 89% downside volume while the ES was down 2.5% (100 points) and the NQ was down 3.8% (460 points). Impressively, those losses were cut to 0.8% and 2.2%, respectively. 

We had similar action on Friday. 

I don’t know if this is simply delaying the inevitable (i.e. lower prices) or if it’s the bulls making a stand. Either way, it’s something to take note of as the S&P tries to avoid its 8th straight weekly decline. 

Remember how that has played out over time. 

Game Plan — S&P (ES and SPY), Nasdaq (QQQ), Bonds, Dollar, Wheat

We have a $30-handle on the VIX, but there are some individual names trading well. See the Go-To list below for which ones I’m referring to (and I’ll send a separate email). 

S&P 500 — ES

Yesterday we wrote: “On the upside — what do you know? — 3950 is key again this morning.”

That remains the case today, even as we momentarily cleared that level during Globex. Above 3950 puts