U.S. Stock Indices Reverse Off Strong Open
Volatility in U.S. stocks is up. In fact, the CBOE’s Volatility Index (VIX) posted a reading of 35 on Tuesday ― a level not seen in months.

The U.S. stock indices are showing signs of fatigue after reversing from a strong open. With only a few hours left in the Wall Street session, the DJIA DOW (-54), S&P 500 SPX (-5), and NASDAQ (+16) are trading to the red. While anything can happen going into the close, participants are largely neutral going into Friday’s trade.
On the economic news front, this morning brought the weekly jobless claims figures. The numbers improved, albeit at a slower pace than expected. Here are the highlights:
Event Actual Projected Previous
Continuing Jobless Claims (August 28) 13.385M 12.925M 13.292M
Initial Jobless Claims (September 4) 884K 846K 884K
The key metric from this group is the static performance of Initial Jobless Claims. Once again, the figure came in beneath 1 million; while dismal, it does suggest that people are getting back to work. Continuing Jobless Claims came in higher than expected, largely due to the emergency extension of enhanced COVID-19 unemployment benefits.
No matter how you cut it, stocks are on their back foot as the late-session rolls on.
S&P 500 In The Red As Stocks Give Back Early Gains
Perhaps the biggest takeaway from the September E-mini S&P 500 chart below is the size of the daily price bars. Volatility has spiked dramatically over the past week, mostly to the bear. In fact, the CBOE’s Volatility Index (VIX) posted a reading of 31 on Tuesday ― a level not seen in months.
++9_10_2020.jpg)
Overview: Earlier, the September E-mini S&P 500 failed at the Daily SMA (3415.75). This is a bearish sign, but may lead to a directional move tomorrow.
For the time being, the action has become compressed in the vicinity of 3400.00. If the market closes the week above the Daily SMA, it’s probable that forthcoming sessions will be green for the S&P 500 and U.S. stocks.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
HFM
Related Posts
Doo Prime
XM
Best Forex Brokers
