The VIX has met some support at the 200 Daily Simple Moving Average
|- The VIX is slightly higher on the session even as equities jump on Monday.
- The price has bounced off a key support area as equities stall at higher levels.
Fundamental backdrop
Equities have bounced higher after the Independence day break on Friday and over the weekend. Once again the markets are choosing to look at the positives rather than the rising number of coronavirus cases in the US. Today's US ISM non-manufacturing purchasing managers’ index (PMI) pushed higher to 57.1 in June from 45.4 in May. Once again the tech sector is outperforming and industry bellwether Amazon topped the $3K mark for the first time.
In terms of the S&P 500, Freeport McMoran is the top performer rising around 10.17% on Monday. The company may need to shift its tactics due to the COVID-19 pandemic. They also stated the new operations come as the company says that it expects to see higher copper and gold production in the second quarter. The bottom of the leaderboard is dominated by energy firms as travel restrictions remain in place in the US.
VIX daily chart
The chart below shows the VIX price bouncing off the 200 day Simple Moving Average to great effect. The VIX price had been heading lower at the start of the session as the risk sentiment seemed to be positive. The key level in the index remains at 23.5 and a break to the downside could mean a return to more "normal" levels.
The Relative Strength Index is holding below the 50 area which means we could still see a fall. The MACD is also looking depressed as it is in the red and the signal lines are still below the zero line.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.