All the charts and data we refer to can be found on the Yacht Club page.
Hey everyone,
We expect sideways action, leaning to the upside. If you want a "target," 6675 seems like it should be achieved this week, since it's Robot Jim's mode. This stability, however, is an artifact of positioning and vol, and it's probably not going to last more than a couple weeks. I.e., after some consolidation, we expect new lows.
Well, we're already back at the lows. We got to 6650 this week, but never 6675. The new lows that we were expecting appear to be manifesting today, after just a week.
SPX pointing down a bit this morning.
Jim's distribution hasn't changed.
That means that war and energy prices are what continue to drive price-action (Jim does not have either of these as inputs).
In our view, the most interesting artifact of data for today is that we're riding the edge of some higher volatility. The path between yesterday's close and 6400 marks a doubling of volatility according to GEX+ and GIV (GIV moves to 40 at SPX 6400).
As such, we should expect a pretty rapid expansion of volatility this morning, and a relatively fast move down to 6400.
Have fun and stay safe!
The SqueezeMetrics Team
