Jay Pestrichelli Discusses Market Resistance Levels with MarketWatch
By Jillian Baker
Chris Matthews of MarketWatch met with Jay this morning to see what he, as a strategist, believes is going on with the market. Full coverage of Jay’s discussion can be found here.
One of the insights that Jay shared with MarketWatch was how the market has not moved above its recent resistance levels. In fact, many have been noting that as a stopping point for this latest rally off of the December lows.
Remember though, resistance in markets is only resistance until the market breaks through. Then it becomes new underlying support. While a lot of people are pointing to price levels as reasons why the market may have trouble moving higher, we follow the VIX Index as well.
The VIX Index is a measure of expected future volatility. The VIX is now at its lowest point so far this year, indicating less fear in the markets. This is a strong counterpoint to the market topping view. But as we always say at ZEGA, don’t try and time markets. Be invested, remain hedged, and leave the predictions to other people.