Vix Suggests S&P 500 Could Dip to 3800
Gregor Horvat | Feb 27, 2023 02:06PM ET
The US Dollar Index closed very strong last week as inflation remains in focus after New Home Sales and PCE index jumped in the US, as reported on Friday. Good economic data is not helping the FED much so further economic news and data will be important to track, as it may help to find out how hawkish FED will be going forward. Some believe that not much as the economy can’t handle higher rates for too long. US services and manufacturing PMI’s this week will be another important part of the puzzle for inflation expectations.
Looking at the S&P 500 E-mini, we can see that index has turned lower back to 4k and that there is room for 3800 as volatility & fear turn up, possibly to the upper side of 2022 range on $CBOE Volatility Index. For now, still 2 counts are on the watch list, but the bulls can be back early if 3800 causes intraday impulsive bounce. Bearish if 3800 is broken decisively.
Also, keep an ey on Aussie this week, and don’t miss important CPI on Wednesday. I covered Aussie and a lot more in our video below.
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