The Hang Seng closed up 1.8% and Australia closed up a little more than half a percent, but Europe is flat to slightly down. The S&P Globex trading is down 2 points right now. So it looks like a flat day. From casual observation, it has usually been a flat day after a big move the previous day.
Yesterday’s move up after poor initial claims for unemployment and a final -5.5% annualized decline in first quarter GDP shows resilience in the market. The initial claims number was larger than expected, the Q1 GDP number slightly better than expected.
Bill Luby posted the VIX:VXV ratio in VIXandMore yesterday after the close. The ratio closed below 0.9 which is bearish. The VIX measures 30 day out implied volatility and the VXV 90 day volatility. So the near volatility is slightly more than 10% below the three month. So either VIX has to rise or VXV to fall. Usually the VIX moves up, which is bearish, rather than the more sluggish VXV moving down.
My bias is downward, I am long some SPY Sep puts and short some June quarterly calls.
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