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The Calm Before the Storm?
The VIX was trading in the $13s despite ‘hell week’ being on tap
Danny Riley
June 12, 2023
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Our View
The S&P has been up four weeks in a row as it heads into “Hell Week.”
Today’s a relatively quiet day, data wise. However, the CPI report and the first day of the Fed's two-day meeting is on Tuesday. On Wednesday, we’ll get the PPI report and the Fed's rate decision. Finally, “Fry-Day” features the June triple witching. Don’t forget that the quarter Opex chop can start a few days early.
While the rally may be tied to 8 to 12 stocks, it officially pushed the S&P out of the bear market last week, while the Nasdaq is now on its longest winning streak since 2019. The coming week will be a big test for the S&P and Nasdaq and whether these indices can hold.
The S&P 500 finished the week with a current year-to-date gain of 12%. The equal-weighted version of the S&P 500, which gives every company equal weighting rather than basing their weighting off of their market capitalization, ended the week with ~2% gain for 2023.
Our Lean
I’m going to keep this short and sweet…