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Market Outlook Thursday

The market rallied again the entire day today, but this time, we are seeing the VIX futures terms turning bullish too. It has moved from backwardation into contango. This indicates that the traders are either fully hedged or turning bullish. Nevertheless, the path to higher prices is open. We may also experience a short squeeze and short covering. On Friday, we will have monthly options expiration, which means many puts people bought as protection will expire out of the money (the market will make sure to take money away from shorts). We are likely going to 200-day MA at 4,100 for now. Then we will see if we break above or sell off again. Of course, there may be pullbacks on the way up. Nothing goes up in a straight line.

Market Outlook Friday

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