Monday, 4 January 2016

Closing Brief

US equity indexes closed significantly lower, sp -31pts @ 2012 (intra low 1989). The two leaders - Trans/R2K, settled lower by -2.1% and -2.4% respectively. Near term outlook offers a gap fill at 1950, if not a little lower to the 1920/00 zone - as suggested by the bigger weekly/monthly cycles.



*closing hour action: weakness to 1993, but holding the morning low of 1989, spiking higher into the close, as no doubt some equity bears closed out after a third net daily decline.

... and that concludes trading day'1 of 250 (or so) in 2016.

Clearly, a day for the equity bears, having seen a fair few aspects of support broken under.

I realise some will be calling a floor from 1989, but that makes ZERO sense as a key floor for early January.

Highlight of the day... seeing Pisani quoting circuit breaker limits in the early morning. Those cheerleaders on clown finance TV sure get spooked easily.

If the market sees broad weakness in the weeks and months ahead, the mainstream will no doubt start to get real moody with Yellen. Calls for more money printing will soon start appearing.

a daily wrap will appear at 6pm EST.

The 'outlook for 2016' - with YOUR predictions, will appear at 8pm.