The S&P 500 Tests a 12-Day High

The Japanese stock market had an astounding 7.71% rally yesterday. This has helped U.S. stocks open higher this morning. The S&P 500 isn’t too far from 1993.48, which is its intra-day high for the last 12 trading days. The index has been as high as 1,988.63 today.

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The VIX is starting to chill out as the market rises. The VIX is currently at 22. As I’ve said before, I’m looking for a close below 20 before I give the “all clear” signal.

In retrospect, the Chinese devaluation completely changed traders’ view of when a Fed rate hike would come. Before the devaluation, traders thought a September rate hike was probable. Now they don’t, but they think a December hike is likely. I’m not convinced the Federal Reserve cares what stock traders think, but the perception is that a rate increase has been delayed.

Posted by on September 9th, 2015 at 10:27 am


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