Complacent Dow Futures Rally Vexed
An unusually low market volatility reading is tapping the
brakes on two-week rally in Dow index futures
(
DJU0 |
Quote |
Chart |
News |
PowerRating). The VIX
(
VIX |
Quote |
Chart |
News |
PowerRating), a
measure of volatility of the S&P 100
(
OEX |
Quote |
Chart |
News |
PowerRating), hit its lowest level since
December 1999. When the VIX reaches low levels, it shows that the market is
unusually complacent, with few players buying protective puts and many seeking
to earn premium income. The VIX is a contrary indicator in that unusually low
levels generally signal that a reversal from highs is at hand.Â
Nasdaq 100 futures also hit a critical
resistance level and are turning downward.Â
Japanese yen
(
JYU0 |
Quote |
Chart |
News |
PowerRating)Â are making good on a Turtle Soup Plus One
Sell off of contract lows. The September contract started higher and
retested the open. But after failing to break the opening range by more than two
ticks, has rallied up to the most obvious resistance, the Aug. 10 low.