Quick Notes: Mixed day for the major indices with the DOW/SPX/IWM closing lower while the NDX/COMP closed slightly higher. This week we have have FOMC and OPEX to add to the mix. For today, the SPX managed to close above it's previous highs (3950) which can be seen as a successful backtest for now so let's see if the bulls can extend the current uptrend. A failure to move higher opens the door for a retest of the 9 day EMA below around 3915/20 area as initial support.
One thing to consider here would be some hedging this week with the VIX back near recent lows. The Spot VIX has now drifted down nearly 40 percent (spread from highest VIX futures contract) which tends to serve as a topping indication in the coming days for stock prices (Tom McClellan)
Please take a moment to look at the trade ideas.