Monday 6 October 2014

Closing Brief - messy day

It was a particularly messy day for US equities, opening higher, but quickly turning negative. Even the latter day bounce is not enough to give clarity either way, with the sp'500 settling -3pts @ 1964 (range 1977/58).


sp'60min


sp'weekly8


Summary

..frankly, I remain in something of a daze... so this will be even more brief than normal.
 --

So... opening gains...failing...and an intraday swing of around 1%.. that is kinda interesting, but the minor net daily decline doesn't really give clarity either way.
-


Weekly charts remain outright bearish

For the equity bears, the fact the weekly 'rainbow' candle has started the week red... it is something, but really.... either we drop to 1910/00 this week, or it ain't happening at all.

Right now, primary target would be the lower weekly bollinger, currently @ 1917. In a number of previous multi-week down cycles, at the very most, bears can hit 5/10pts under the band, before a major snap higher.

As it is, price structure is not at all clear on the smaller hourly/daily cycles. I will not be surprised to see some very diverse opinion across this evening and into tomorrow.

--
...I should get back to bed...

goodnight from London