The SPY Climbs Higher Ahead Of Jackson Hole Symposium: The Bull, Bear Case For The Stock Market
Portfolio Pulse from Melanie Schaffer
The SPDR S&P 500 (NYSE:SPY) rose about 1% during Wednesday's trading session, ahead of Nvidia Corporation's earnings print and the Jackson Hole Symposium. The SPY had fallen 5.75% between July 17 and Aug. 18 before rebounding over the last four trading days. There's a possibility the market ETF could be settling into a bear flag pattern. If the SPY breaks down from the bear flag pattern, volatility in the stock market is likely to increase. Traders can trade the potential volatility with options like the ConvexityShares Daily 1.5x SPIKES Futures ETF (NYSE:SPKY) and ProShares Ultra VIX Short Term Futures ETF (NYSE:UVXY).

August 23, 2023 | 5:48 pm
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NEUTRAL IMPACT
The SPKY is a 1.5x leveraged fund that tracks the SPIKES Futures Short-Term Index and measures volatility in broad-based equities. It could be used to trade potential volatility if the SPY breaks down from the bear flag pattern.
The SPKY's performance is tied to the SPIKES Futures Short-Term Index and could be impacted by increased market volatility if the SPY breaks down from the bear flag pattern. However, the direct impact on the SPKY is uncertain, making the short-term impact neutral.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
The SPY rose about 1% during Wednesday's trading session but could be settling into a bear flag pattern. If it breaks down from this pattern, market volatility is likely to increase.
The SPY's recent rise is a positive sign, but the potential bear flag pattern could lead to increased volatility and a potential downturn. This makes the short-term impact neutral.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
The UVXY tracks the movement of the S&P 500 VIX Short-Term Futures Index and could be used to trade potential volatility if the SPY breaks down from the bear flag pattern.
The UVXY's performance is tied to the S&P 500 VIX Short-Term Futures Index and could be impacted by increased market volatility if the SPY breaks down from the bear flag pattern. However, the direct impact on the UVXY is uncertain, making the short-term impact neutral.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80