Market Analysis (15 March’21)

Stock-market benchmarks booked modest gains Monday, but enough to push the Dow Jones Industrial Average and the S&P500 further into record territory.

TREND ANALYSIS

After today’s session, all four indices continue to be in an UPTREND on their daily, weekly and monthly timeframes.

S&P500: Monthly, Weekly and Daily Heikin Ashi Charts

Nasdaq: Monthly, Weekly and Daily Heikin Ashi Charts

Russell: Monthly, Weekly and Daily Heikin Ashi Charts

Dow Jones: Monthly, Weekly and Daily Heikin Ashi Charts

FUTURES PRICE LEVELS

S&P500

The S&P500 futures closed at the 3960 level today, which acted as resistance twice during the last several weeks (see chart below). Should the index finally break out in the near future, it will be on its way to reach 4000 for the first time ever.

ES, 1h

Nasdaq

The Nasdaq index was able to recapture the 13000 level today. As long as the index holds above this critical level during the next several sessions, the odds will favor higher prices moving forward.

NQ, 1h

VOLATILITY SPIKE INTO MAY?

While the fear indicator closed around 20% today, someone decided to go long VIX by placing a $30m synthetic long position as a hedge against a potential sell off scenario into May 2021. The trader purchased 42000 of 19 May’21 $55 calls and sold the same number of 19 May’21 $20 puts. For a bear case to materialize, we would need to see SPX drop below 3800 level and NDX drop below 12700 support during the next several sessions.

VIX, Synthetic Long Trade

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