CME_MINI:ES1! S&P 500 E-MINI FUTURES
Here we have the SPX (emini contract) versus the short-term VIX volatility (inverted). Both point to a short-term speculative bid to see the market rebound. traders 'buy the dip' while options traders 'sell vol'. Both sides groups have picked the low-hanging fruit. To continue higher, the new investment will need to be more committed to the buy-and-hold mentality. Not much of that left in the market.
Seems that it is junk that is propping the market up, momos like NFLX and biotech...biotech especially, seems people are buying a dream rather than a profitable company. Don't get me wrong, some are profitable. I think people also have an emotional connection to biotechs due to family or personal ailments. I am short ES although am not holding my breath. Waiting for price action next week as this type of move of the last couple days seems to happen right before OPEX and then sell off afterwards.
Greek "crisis", china market liquidity and highly suspect GDP of 7, Iran deal and oil implications, Yellen and "need" to raise interest rates, the upside in the $ and its implications for multinationals, the collapse of commodities, etc - ALL failed to break Technology and the S&P500. Both Volume and volatility have fallen. There is no fear indicated in the marketplace. When markets show resilience and climb a wall of negative news, it takes extreme to to take a contrary position. I was trying to write puts on the 7th. Most were not taken. While I agree that there is little positive news and that valuations are past mid range, the technicals indicate at least short term upside. Good luck with your shorts