Stock exchange news. During the previous week American stock market S&P500 index future has broken the top line 1200 of broad flat zone, within which it has been moving for the major part of the previous month. However, it was hard to break the point, as till the end of the week it has again returned to flat zone, and the week was closed at the level that is close to August maximum volumes. It is worth mentioning that the days of fall are not accompanied by rapid growth of volumes any more, as it used to be in the recent past. Shortage of daily candlewicks on the chart also indicates some stability of the situation and decline of panic climate. The nearest levels of support are currently situated at the following levels: 1150, 1100 (option barriers at psychologically significant levels), and 1077 (local minimum). Levels of resistance remain the same (1200, 1250, and 1300 option barriers as well as a 50-day and a 200-day moving averages). The latter have also been joined by local maximum, which has been formed at an attempt to break flat zone at the level of 1229.75.
This week S&P500 index volatility started moving towards lower values, which have already become common during the last year. Thus, the trend weekly range amounted to 61.25 future points, the daily range of the week’s most volatile day (it was Monday) amounted to 36.5 future points, and on Tuesday (last week’s least volatile day) the daily range amounted to 25.25 future points. It is not yet higher than the average yearly values, but considerably lower than the average August values, when on certain days daily volatility amounted to about 100 points. The expected volatility has also left the “storm zone”, which is proved by the values of VIX volatility index: last week its value was fluctuating in the range of 30-35, whereas the value higher than 40 is considered to be the zone of high volatility.
The calendar of economic news issues for the following week:
September 5 is a day off in the USA. From the point of view of influence on volatility, traders may find it especially interesting to observe the non-manufacturing index value issued by National Association of Purchasing Managers on Tuesday at 18-00 Moscow Time. They would also like to observe Trade Balance, which will be issued at the same time, and Unemployment Claims issued on Thursday at 16-30 Moscow Time.
Prepared by: MF Academy Department of Options
