Oil Crush Could Be Divergence Needed For Market

WEEKLY MARKET ANALYSIS

Stocks opened modestly higher and the advance continued but decellerated intra-day into the close. The Dow Jones Industrial Average ETF DIA was up 0.58 points on the day and closed around 252. For the S&P 500, there is support near 2766 and 2743. Resistance levels are currently at 2810 and 2833.

GLOBAL ASSETS UPDATE

TWELVE SECTOR ANALYSIS

VOLATILITY UPDATE

On Wall Street, 7 of the 12 major market sectors are seeing red today. The biggest losers are Energy (XLE), Financial (XLF), and Pharmaceuticals (XPH). The strongest sector today has been Consumer Discretionary (XLY) which has gone up 0.4%.

The CBOE Volatility Index (VIX) is up $1.92 going from $2786.94 to $2788.86 today. The ratio of puts to calls for the current at-the-money strike of $2788 is below average which means that traders are favoring Calls over Puts currently.

MARKET HEAT

A NASDAQ stock with unusually high volume today is Himax Technologies, Inc. (ADR) (HIMX). No AMEX names had significant interest, and on the NYSE Evolent Health Inc (EVH) has had unusual volume.

The biggest mover out of other high-volume stocks is Evolent Health Inc (EVH) which has moved down over -29% recently on volume of over 0 thousand shares. The chart below shows the performance of EVH over the last year. Evolent Health, Inc. is engaged in healthcare delivery and payment.

DARWIN EVOLENT HEALTH INC FORECAST

The performance of Evolent Health Inc (EVH) will be worth watching in the near term for a number of reasons. The forecast for the coming week on EVH is for the price to go up. The correlation of EVH to the S&P 500 recently has been 0.6 which is a moderate positive correlation. Key levels to watch for EVH are upside resistance at both the $13 and $19 price points.

Trade smart,

Paul "Bulldog" Hudson, Chief Investment Officer
Darwin Investing Network