Stocks tread water — but a wave of volatility is building

The column warns that the S&P 500 is showing fresh technical sell signals despite a recent rally tied to Nvidia hopes. While the SPX chart remains overall bullish, key indicators — equity-only put-call ratios and breadth oscillators — have flashed sell signals, and the author highlights first support at 7,330 and major support near 7,000. VIX remains range-bound near its 20- and 200-day moving averages, so volatility has not yet trended higher, though the author expects volatility derivatives to stay constructive for stocks. Recommended actions include adding a defensive SPY put spread (buy ATM June 26 put, sell one 40 points lower) and other option adjustments across various positions; the newsletter also lists upcoming earnings (e.g., ZS, MDB, MRVL, COST) to trade straddles/strangles. Overall, the piece is cautious — monitoring indicators rather than predicting a clear breakout or crash — and recommends option-based hedges and trades to manage potential volatility.