Market Update: VIX Spikes, Major Stock Moves, and Key Trends to Watch - Aug 6, 2024

In today's pre-market update, Stephen Whiteside from TheUpTrend.com highlights that stock index futures are up across the board, though not enough to offset the previous day's losses. The market is showing some bargain hunting behavior, but this is unlikely to change the overall direction. The VIX spiked yesterday, with the VXX closing up nearly 40%. Despite entering Monday short on the market and long on Bear ETFs, there were no significant trend changes, although several support levels were broken, particularly the late May lows for the S&P 500 and Nasdaq 100. The financial and energy sectors saw substantial declines, and the Canadian market, which was closed yesterday, is expected to follow suit today. Whiteside also reports significant activity in leveraged ETFs and a downtrend in commodities like crude oil, natural gas, and copper. Money is moving out of the stock market and into bonds, pressuring bond yields downward. Several major stocks, including Nvidia, Intel, Apple, and Amazon, hit new lows but showed some recovery by the end of the day. Whiteside advises caution, noting that while some buying may occur at the market's open, it is uncertain whether this indicates a new trend. Overall, the market's current state reflects cautious optimism amidst ongoing volatility. Stephen Whiteside TheUpTrend.com Tuesday, August 6, 2024 https://theuptrend.com/morning-market-outlook-08062024/