Intraday Market Commentary From Stifel Nicolaus - August 24
Market Commentary from Elliot Spar of Stifel Nicolaus
The 1050 support level on the S&P 500 gave way as sellers reacted to the weaker than expected existing home sales. Take a step back: That break below support lasted for 15 minutes. The averages enjoyed a good bounce which took the NYSE a/d back to only 2 to 1 negative. The Russell 2000 came back and practically filled the gap from the opening. Now, the afternoon playbook. The Russell 2000 is outperforming on the noon time selloff and the volatility indexes, VIX, VXN and RVX are a lot closer to their lows of the session than the highs. For the bulls, we would like to see a close on the S&P 500 comfortably above 1050. On the other hand, if it looks like we are going to close under 1050, it will be all sellers in the last 30 minutes.
VOLATILITY INDEX IN FOCUS
CBOE Volatility Index, VIX 1 26.90 (+ 1.24)
Took out resistance at 28.10 on the poor existing home sales, but that spike was over in 15 minutes. Thus, a false breakout. If the S&P sells off again later today, the bulls do not want to see the VIX back over 27.60.
INDEX IN FOCUS
Russell 2000 Index RUT 2 600.00 (- 2.65)
Held support today at 588-590, which is also the 38.2% retracement of the move off of the March ’09 low.
SPECIAL DIVIDEND OPTION ADJUSTMENT
WCRX – Recently declared a special dividend of 8.50 per share. Options will be adjusted. If you think there is a free lunch, you will be paying for it.