The futures are mixed pre-market. Implied volatility is at a low not seen since early 2007, and prices are near all-time highs. The Housing Market Index is released at 7AM PST (yellow star). Four-day weeks can be more volatile.

ATG’s blog tells us that volatility is not down as much in puts as in calls. When put volatility falls during a down move, it is usually time to go long. When put volatility does not decline during an up move, it signals that parties are hedging their bets, right or wrong.

I cannot foresee the future of the major U.S. equity indexes.  However, I should note: During the previous three up moves in the market since 2009, the market has moved up for 6 straight months at the least. We are now only in month four.


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