Another Volatile Week
22nd March 2008
The financial markets had another volatile week, started with Monday’s follow through on the Bear Stearns news. The VIX was back up to 35, the S&P 500 & DJIA tested their January lows around 1275 and 11,750 respectively.
That was followed by 4% moves to the upside, but alas, that was on lower volume than the previous day. So it did not surprise us when the market took back most of those gains the next day. Thursday ended the holiday shortened week with another triple digit up day, but this time with the triple witching effect of futures and options expiration, the volume was strong.
The week ended with the DJIA and the S&P 500 stopped by their 50 day moving average. The VIX on the other hand was being held up by its 50 day moving average.
We continue to be in a trading range that has a short term upward bias, but is still part of a longer term down trend.
- JD