View From The Hill: October 21, 2015

Commentary and Performance

Stocks are hitting some air pockets of resistance. All three major indexes were down: SP-500 @ 2018.84 (-11.83 / -0.58%); Nasdaq-100 @ 4413.52 (-24.66 / -0.56%); and Russell-2000 @ 1144.95 (-18.32 / -157%). The VIX has bottomed for now and put in a bullish reversal by surpassing yesterday’s high to finish @ 16.70 (+0.95 / +6.03%).

Treasury rates moved down to lift bond prices. The 10-Yr rate closed @ 20.30 (-0.41 / -1.98%) and the 30-Yr dipped @ 28.71 (-0.52 / -1.78%).

The US Dollar Index continues to rise from its support levels and finished the day @ 95.06 (+0.19 / +0.20%).

In commodities, Gold retreated to close @ 1166.80 (-9.00 / -0.77%). WTI Crude Oil also pulled back @ 45.26 (-0.66 / -1.44%) .

Results were mixed in real estate assets. The Dow Jones Real Estate Index closed @ 296.80 (-1.05 / -0.35%) while the Dow Jones Home Construction Index was the strongest capital market theme today @ 599.76 (+3.61 / +0.61%).

Signing off at Hillbent…

Daily Chart Analysis

The overextended rally is encountering some minor resistance. However, given the market’s reclamation of support above its 55 day moving average, the probability for a move to 2044-2045 resistance levels becomes higher. This will be an important test for the bulls and, if successful, could send the benchmark index back towards the 2100 levels.