TradingEdge Weekly for Apr 17 - Election cycle seasonality, VIX regime shifts, liquidity signals, NASDAQ breadth thrust, volatility metrics
Key points:
- Calmer market regime and VIX reversal signal
- Volume-based liquidity premium triggers risk-on
- NASDAQ breadth thrust signals momentum shift
- Historical favorability of election cycle months
- New tools for measuring market turbulence
House view:
- Stocks:
- Short-term: Bullish. U.S. equities continue to extend their historic run, supported by a decisive shift toward a risk-on regime as reflected in both VIX and CDX compression. Drawing a historical analog to this time last year, a similar drawdown in volatility acted as a catalyst for a sustained six-month grind higher in the S&P 500. Broader technicals remain highly constructive. Barring a severe macro degradation, equities are well-positioned for further upside. This time frame covers 1-4 weeks.
- Intermediate-term: Modestly Bullish. Market momentum (61.9) has improved significantly, but the market has not yet returned to a risk-on mode. All major indices are trading well above their 50-day and 200-day moving averages, wi

