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What the Breakdown in Key Volatility Levels Mean for Stocks Next Week

by | Jun 3, 2022 | Market Updates

U.S. stock futures are lower this morning as traders and investors turn their attention to May’s employment data  — and more in Friday’s stock market recap.

The CBOE Volatility Index, also known as the VIX, finally broke its support level to the downside. This is significant because if volatility continues to fall, which I expect it to, over the next couple of trading days, the broader stock market should rise. 

The more the VIX cools off, the better it’ll be for the price of stocks… 

As I mentioned earlier this week, the VanEck Semiconductor ETF (NASDAQ: SMH), which tracks the largest U.S.-listed semiconductor companies, is starting to make its move and lead the market higher. 

There are still a ton of short sellers in the market right now. But if the major indexes and ETFs like the SMH continue to rise, it’ll squeeze all of these shorts sellers out and cause stocks to rally hard. 

In this morning’s stock market recap video, I’ll give you an in-depth update on market internals… which index is setting up for upside trading action in the near term… the major sector I have my eye on right now… why volatility levels are declining and what it means for the broader market… and what type of trading action we can expect heading into next week. 

Don’t forget to like and subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video and see what other trade opportunities we’re paying close attention to! 

P.S. Most traders don’t realize this, but there are stocks that tend to thrive when the Federal Reserve raises interest rates… 

And these stocks are making new all-time highs right now…

I call them “Super Stocks.”

They’re not companies you’ll hear about on Fox Business or CNBC, and they aren’t stocks your friends are talking about.

That’s why I put together a short bootcamp training video that reveals everything for you.

But don’t wait to watch because these “Super Stocks” are dirt cheap right now… I mean, the Fed just started tightening so there’s still plenty of meat on the bone. 

Check out These Stocks!

P.P.S. When it comes to trading, every second counts. And in choppy markets like these, often driven by headlines, stocks can make big moves in a flash.

That’s why I want you to get my latest trading ideas and market updates as fast as possible. So I’m rolling out an all-new option for my students to receive trade alerts with Telegram!

Telegram allows me to get trade ideas, videos and watchlists to you in a matter of seconds.

Check out this short article we put together with instructions on how to download telegram and access my private channel. Go here to get the details. 

Stock Market Recap: By the Numbers

This morning’s stock market futures recap: 

DOW (mini)

  • Close: 33,248.28.
  • Futures: 33,007.
  • Change: -216.

S&P 500 (mini)

  • Close: 4,176.82.
  • Futures: 4,138.
  • Change: -37.25.

NASDAQ (mini)

  • Close: 12,892.89.
  • Futures: 12,729.5.
  • Change: -163.75.

RUSSELL (mini)

  • Close: 1,897.67.
  • Futures: 1,886.9.
  • Change: -10.

Note: Updated as of 9:17 a.m. EDT.

On Fridays, we’ll review the week that was… We’ll discuss how our trades did, what we learned and how to apply it to next week’s trading plan, and any developing trade setups. This video will put a bow on the week. We’ll also go over winners from my different member strategies. 

Need help understanding some basics that we discuss frequently? Check out some of our educational pieces to help get yourself up to speed! Have a question or a topic you’d like us to explain in a future article? Send your thoughts to support@marketgeeks.com

Check back each morning for the Roger Scott newsletter and the most important news and numbers in the WealthPress stock market recap.

WRITTEN BY<br>Roger Scott

Roger Scott

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