Insights 
VT 
The S&P 500 made a test of Friday’s closing values and rebounded past initial resistance levels at 6,665, reaching the 6,720s in premarket. This resistance in the mid-6,720s caused a retreat by the end of the day due to fresh China-related tensions.
Amidst these market movements, the Nasdaq lags behind both the S&P 500 and Russell 2000. Potential outcomes from a forthcoming Trump-Xi meeting are anticipated, despite current uncertainties. The newsletter writer, Monica Kingsley, has been active as a trader and financial analyst for multiple years.
Recent Economic News
Recent economic reports show Australia’s unemployment rate may rise, and New Zealand faces losses amid trade tensions. Meanwhile, gold rallied beyond $4,200 due to global economic and trade uncertainties. Silver also saw gains from safe-haven demands linked to US-China tensions.
The markets and related instruments are covered for informational purposes only, stressing the need for independent research in investment decisions. The author is not affiliated with any mentioned stocks or companies and does not provide direct investment recommendations or claims for informational accuracy. Any potential loss remains the responsibility of individual investors.
The S&P 500 is now pushing against major resistance in the 6,720s, a level that stopped the advance just yesterday. The CBOE Volatility Index (VIX) has been stubborn, holding above 20 for the past two weeks, telling us the market expects bigger swings ahead. This is a critical moment, and how the index reacts here will likely set the tone for the rest of the quarter.
Market Strategies And Analysis
A decisive break above this level could trigger a significant rally, especially if we get good news on the US-China trade front. We are looking at buying call options or setting up bull call spreads to capture that potential upside with defined risk. The relative strength in the Russell 2000 suggests smaller companies are leading, which is a healthy sign for the broader economy.
However, the Nasdaq lagging behind is a major warning sign that big tech is not participating in this move. If resistance holds, protective puts or bear call spreads on the SPY and QQQ look attractive for a potential pullback toward the 6,600 level. This feels similar to the market choppiness we saw back in the fall of 2024 before the year-end trend became clear.
With the market at such a tipping point, volatility itself is the trade to watch. For those uncertain of direction, using options straddles on the SPY could pay off if we see a sharp move either up or down in the next few weeks. An elevated VIX makes these strategies more expensive, but it also confirms the market’s coiled-spring setup.
We should also remember that the uncertainty is pushing capital into safe havens. Gold blasting past $4,200 an ounce, a price not seen since the political turmoil of early 2025, is a clear signal of this flight to safety. This makes derivatives on gold miners (GDX) or silver (SLV) an important hedge against any equity market weakness.
