Quotes as of 08/14/2019 10:30PM PST according to Yahoo Finance. Quotes should not be taken as real time.

After a very red day on the market, U.S. futures are showing a slight bounce.

Following Wednesday’s close, we’ve fallen out of the upward channel and could not break above our moving averages. With this failure to make new highs we also saw a lot of participation in selling which may be indicative of further selling as another major support level of 280 is retested.

It’s important to note that of all technical analysis, trend lines are the most prone to invalidation and or other factors intervening. It is likely we may pop in the morning and retest the trend line that we’ve fallen out of which may in fact now turn to resistance.

If you’re unaware, the UVXY is the ProShares Ultra VIX Short-Term Futures ETF which provides leveraged exposure to the S&P 500 VIX Short-Term Futures Index, which measures the returns of a portfolio of monthly VIX futures contracts with a weighted average of one month to expiration.

• Designed for knowledgeable investors who seek to:
• Profit from increases in the expected volatility of the S&P 500, as measured by the prices of VIX futures contracts.
• Reduce U.S. equity portfolio risk, since changes in the VIX Short-Term Futures Index have historically been negatively correlated to S&P 500 returns.
• Intended for short-term use; investors should actively manage and monitor their investments, as frequently as daily.
• Does not track the performance of the Cboe Volatility Index (VIX) and can be expected to perform very differently from the VIX.

Upon the US 10 Year Note and US 2 Year Note yield curves inverting, panic ensued in the market. Former Chair of the Fed Janet Yellen stated she believes that this age old indicator should be taken with a pinch of salt this time and doesn’t believe that people should feel uncertain about the future of the market.

It’s important that we understand markets are cyclical and that sell offs are truly blessings in disguise. Check out this article on The Vanguard Group founder John C. Bogle as we revisit some of his words of wisdom.

Stay safe and don’t forget to enjoy life.

Currently the Dow 30 futures have risen +108 points or +0.45%.

The S&P 500 futures are up +14.64 points or +0.53%

The NASDAQ futures are up +0.47%

SmallCap 2000 futures are up +9.55 points or +0.65%

S&P 500 VIX has fallen 0.50 points or -2.54% but suffered a large spike Wednesday.

The China A50 has fallen -0.14% since open

SZSE Component is down -87 points or -0.98%

Shanghai is down slightly at -8 points or -0.32%

The Nifty 50 futures are currently down -66 points or -0.59%

China H-shares futures are down -0.06%.

The Hang Seng futures are currently showing a small gain of +0.13%.

Europe futures on the Euro Stoxx 40 closed -0.48%

FTSE 100 futures are up +0.07%

The Nikkei 225 is down -271 points or -0.91%

TOPIX futures are up 22.50 points or +1.54%.

Singapore MSCI futures are down -0.77%

Koreas KOSPI 200 futures are up +1.09%

S&P/ASX 200 futures are down -0.73%

CAC 40 closed down -2.57%

The DAX is up 88 points or +0.78%

Disclaimer: This is not financial advice, I am not a financial adviser. I hold no positions in the S&P nor volatility index.