Stocks opened lower this morning (Dow -110 pts; SPX -.6%). We’re right in that weird pre-earnings season period with only geopolitics to keep us busy. Financials and tech are down almost 1% in early trading. It looks like some of the stocks that have surged over the past few months are getting hit harder (MU, SWKS, AAPL, AMAT). I think the market will likely recoup some of the these losses by the end of the session. The VIX Index is up 11% to trade over 15.5; that’s a big jump in expected volatility. The VIX hasn’t been above 15 since the election. But remember, typically the VIX isn’t considered elevated unless it reaches 20. The dollar is down today (and about 1.5% year-to-date). Gold is higher on the day but most other commodities are lower. WTI crude is trading modestly lower to $52.80/barrel. Bonds are higher on the day (lower in yield). The 5-year Treasury is down around 1.84% and will likely fall to technical support at 1.80%. The 10-year Treasury is now yielding 2.31% and the next support level is 2.29%.
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