Karpel’s Corner: With $VIX Below 17, Can Tech Market Bounce?

Welcome to Karpel’s Corner. This is where I throw out my thoughts on the markets and share some of my favorite strategies. I keep it market-focused, and never miss an opportunity to teach trading strategies and commentate on the latest trends affecting the financial markets. Hope you enjoy today’s post!

The Nasdaq ($QQQ) has been choppy and was trading neutral to slightly bearish. However, volatility was not in an area where we saw the fear signaling the bulls had lost control.

As a matter of fact, unless we see cash $VIX above 17, the tech bulls might be positioning for a decent bounce. The Finance ($XLF) sector has already bounced, challenging the $22.50 level that needs to be broken and an EOD settlement above that level.

What I did not like is the potential Whipsaw in the Small Caps, $IWM. So right now we are above the $111  support level but buyers are not as active versus the large cap indices. Now, maybe this small cap buying group is showing patience before picking up the trade, but I want to watch these levels for some conviction–again a break above $114 or $111. 

We have 3 names for you–$SCHW, $LAZ,$EFTC–all in a short- or long-term bullish trend.  Check out our new upgrade to the Tradespoon Bulls & Bears section. All columns are sortable and we list the industry that the stock represents.

See you next time at the Corner!