I still like buying the S&P e-mini on today's dip. The November VIX future has been in a downward spiral, indicating that investors do not believe a sell-off, and volatility pop is on the horizon once the October future comes off the board next. Today saw a bit of a failed attempt to remain above 2,550, but I think it will allow for a chance to buy in. My buy price was 2,540, but I'm comfortable buying even putting a buy order in up at 2,547 now. Our models indicate a high probability of the S&P e-mini trading 2,570 by month's end as I think the earnings season will produce a solid outlook on the fourth quarter.


Although the crude oil rally has taken a break and is even down a dollar on the day, the $50 level remains supportive. The market seemingly has been ignoring the U.S. Dollar recent action and has been more focused on the demand side sprinkled in with some potential geopolitical risk. The Iran "de-certification" news could be impactful on WTI. Also, OPEC & non-OPEC members continue to land hits to the body as they suggest lengthening supply cuts, all at a time that they finally have some upside price momentum. This surprising recent move back above $50 in crude oil seems to have more legs as the pain trade is higher, not lower.