Key Levels Are Under Pressure 🌤️ The Morning Print

Good morning! 

Is the S&P 500 about to catch down to the Nasdaq?

The Nasdaq is currently testing its pivot lows near $28.5K, and a decisive break below that level would shift the intermediate trend from sideways to lower.

In yesterday's Morning Print, I wrote about the difference in volatility between the Nasdaq and S&P 500.

If the VIX begins to catch up to VXN, the S&P 500 is likely retesting its prior lows under that scenario.

From a seasonal perspective, the VIX has historically tended to bottom around this time of year, which could provide a tailwind for volatility in the weeks ahead.

Semiconductors also appear to be breaking down from a head & shoulders top.

That said, a similar pattern developed in March before the group went on its historic rally, so it's worth keeping that in mind.

Today's session will be important in determining whether this premarket weakness carries into the close or if buyers step into defend these support levels.

Next week should be even more pivotal, as I'll be watching closely to see wether these tops confirm, or ultimately fail.