S&P 500 heading for another major correction

U.S. stock futures are red to start the day. This should be an interesting week for the markets as we are coming off of the best week in the markets since 1974. Yet, we are entering into earnings season which I believe might be the catalyst to send us back down even though these earnings will only reflect about half of a month’s impact from the COVID-19 Crisis on earnings. But we shall see as many will be adjusting their forecasts in response to the pandemic.

Short term momentum indicators are point up at the moment, additionally, the VIX has decreased this morning and is sitting at 43.18. Still the larger marco picture has a strong Yen and even bonds and the SPY charts are near the top of the Bollinger bands.

So, looks like WallStreet may be going with PUTS as I think it is the safer play today. The SPY 10 minute premarket chart seems to be losing momentum and the SPY has failed to break back into its trend channel. So with the larger marco winds against us so far this morning today, WallStreet may be looking at PUTS.