Last week the E-mini S&P 500 opened the week at 1346 and closed the week at 1290.75. That is a weekly drop of 55.25 points.
On the daily chart below, we see technicals showing a very strong trending market with ADX at 50. Looking at the vertical red line you can see the technical trade set-up starting May 3 and 4. MACD is bearish and Stochastics are in deep oversold territory.
Looking at the weekly VIX chart below, you can see where the S&P was trading when the VIX hit 36 and then 42 over the past year. Look at the weekly chart below to see where the E-mini S&P 500 was trading when the VIX was at 16.
Proceed to Page 2 for the latest COT Data...
On the weekly chart look at the COT Traders in Financial Futures chart. You can see over the past few weeks how Dealers have been liquidating net shorts now at -428,266, Asset Managers have been liquidating net longs now at 511,983 and Leveraged Funds this past week liquidated net shorts now at -352,937. Taking a closer look at the weekly chart and the newer COT report, look at the net short and net long positions of Dealers and Asset Managers when the S&P was trading around 1120, interesting isn’t it?
If you need help understanding how to understand how to use the NEW COT report to your benefit get instant access to my new e-book "What Lies Beneath ALL Trends". It is filled with eye opening information.Commercial Net Tracker instructions: This form tracks the Commitment of Traders (COT) data for the commodity futures market. This form "looks" at the most recent five weeks of COT data and provides visual indications of the data. A) If the current value is at a 12-month low, the cell will display a red/burgundy background. B) If the current value is at a 12-month high, the cell will display a green background. C) If the current value went from net negative to net positive, the cell will display a blue background (indicating a bullish condition). D) If the current value is both a 12-month high and also went from a net negative to a net positive, the background will be green. You should view the data with green backgrounds to determine if they also went from net negative to net positive.
Proceed to Page 3 for this week's detailed fundementals...
The S&P is up today as this weekend we heard comments from China that it stands ready to provide stimulus to its economy. Chinese leaders pledged to focus more on bolstering growth. The stock market likes this. Also from Europe, France and Germany agreed that they will do everything necessary to ensure Greece remains in Europe’s single currency. Will this be enough as the EU leaders meet yet again in a Brussels summit scheduled for May 23? They put these summits together so fast. Most of these leaders are in Chicago today for NATO.
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