The S&P 500 (NYSEARCA:SPY) had a quiet week and all signs point to a another quiet week ahead.
Major U.S. stock indexes fell slightly on Friday with the S&P 500 (NYSEARCA:SPY) slipping 0.1%.
For the week, major U.S. indexes were up with the Dow Jones Industrial Average (NYSEARCA:DIA) S&P 500 and Nasdaq (NYSEARCA:QQQ) all making small gains.
The big news of the week was supposed to be the Federal Reserve and its interest rate hike, but it turned out to be largely a non-event as Janet Yellen and Company did the expected, a small rate hike, and promised everyone that the economy is fine and rate hikes will be gradual.
The G-20 meeting is happening this weekend in Germany and everyone is wondering about how the new Administration’s protectionist bent will be received.
VIX (NYSEARCA:VXX) the S&P 500 Volatility Index, remains quiet, closing Friday at 11.28, near the bottom of its recent trading range, as complacency continues to rule U.S. markets.
Friday’s “quadruple witching” was also a non-event as stock futures, options index options and index futures all expired on the same day. (VIX Trader had several credit spread positions expire worthless which means we get to keep all the premium.)
Last week’s economic news was uninspiring, as well, as February retail sales rose 0.1%, and the Empire State Index fell from last month’s reading. Housing starts were up but permits were down in February and the March Philadelphia Fed fell to 32.8 from last month’s 43.3 But consumer sentiment stayed strong in March, rising from last month’s reading.
Next week brings existing home sales on Wednesday, and Friday is a big day with February durable goods and March Markit PMI.
The last word: Markets remain quiet as everyone continues to hope for action from the Trump Administration regarding its promises for tax cuts, infrastructure spending, etc. Las week’s budget outline wasn’t too inspiring, however, and so it looks like bruising budget battles lie ahead. Stocks are overvalued and overextended, sentiment is bullish, all of which is generally bearish, but the technical picture still shows a bull market underway. VIX Trader continues chipping away at steady profits via SPY and VXX credit spreads and awaits further opportunities in VIX ETNs.