US equity indexes began the week with very significant declines, sp -26pts @ 1853 (intra low 1828). The two leaders - Trans/R2K, settled lower by -0.3% and -1.6% respectively. Near term outlook is very borderline, with serious threat of the Jan'20th low of 1812 bring broken.. as the Nasdaq and R2K have now done so.
*closing hour action: a bit of chop, but then a clear break to the upside, with bears rushing to cover, terrified of what Tue/Wednesday might bring.
First, it is notable that the market floored at the typical afternoon turn time of 2.30pm. Always kooky how that is often the case.
With the market having cooled from last Monday afternoon @ 1947 to 1828, that is a pretty powerful swing, and its not like there was any particular spooky news. It is arguably the underlying econ/commodity related problems continuing to build.
The hourly MACD (blue bar histogram) cycle is set to turn positive @ 10am tomorrow, so the inclination will be for upside, at least to 1880.
Sustained action >1900 is clearly out of range until Yellen has 'inspired' things.
This market IS a beast...
I highly recommend the movie... which has a seriously intense score.
more later... on the VIX