Tuesday, July 8, 2014
VIX shows possible SPY correction happening
It's popped over its SMA(50), so we might get a bit of a continued spike up for a couple days.
Might this $VIX spike portend a drop just to $195? Or all the way down to $192?
Whatever it is, the only imminent risk I can see is to the upside. Q2 GDP is going to be reported very soon, and according to New Deal Demoncrat or Bill McBride (I don't remember which) it will be an upside surprise whopper. Like 4% or better.
Then earnings season begins. Earnings will have improved yet again if Q2 GDP turns out good. The only possible downside is that analysts become concerned about rising input costs, if Michael Shaoul is right.
So this will be a buy opp, I just have no idea when.