The Standard and Poor’s 500 Index (SPX) closed today at 3913, down 2 points on the day. SPX opened the week at 3943, so the net loss for the week was 0.8%. From the intraday low on March 4th, the low of this pullback, SPX has increased 5.9%. Trading volume on the S&P 500 has continued to trend below the 50-day moving average (50 dma), but spiked higher today, as a result of quadruple witching, the simultaneous expiration of stock index futures, stock index options, stock options, and single stock futures that occurs once a quarter.

VIX, the volatility index for the S&P 500 options, closed today at 21% after hitting 23% this morning and then pulling back just under 20%. VIX has been running at a baseline in the low twenties since the March 2020 correction.

IWM, the ETF based on the Russell 2000 group of companies, closed today at 226.54, up 1.70. But IWM remained down 2.9% from its open on Monday. On the positive side, IWM remains well above its 50 dma.

The NASDAQ Composite index closed today at 13,215, up 99 points on the day but down 0.8% for the week. NASDAQ broke down through its 50 dma on Thursday and remains well below it today. NASDAQ’s trading volume continues its steady decline and remains well below average. The rotation out of high tech into industrials has hurt the NASDAQ Composite index.

We continue to see many mixed signals on the market. We have suffered through two quick dips since the end of January. The decline in early March tried to test the February low but didn’t quite make it. This week’s pullback has traders spooked again.

On the positive side of the ledger, we have the passage of the stimulus bill, progress with the distribution of the Covid vaccine, and several states beginning to reopen their economies. The FOMC this week upgraded their assessment of the economy, but it remains to be seen how quickly we can recover. Many small businesses won’t be reopening as the states reopen.

I continue to trade cautiously and stop out positions to lock in gains whenever possible. We may be in for a choppy ride.