US equity indexes closed broadly higher, sp +16pts @ 2180. The two leaders - Trans/R2K, settled higher by 0.5% and 0.3% respectively. VIX settled -7.7% @ 13.37. Near term outlook still offers threat of a cooling wave to the mid sp'2140s, before resuming higher after opex.
It was a rather tedious day in equity land, with much of the day comprised of minor chop. Yet, there was some distinct strength in the late afternoon, with the sp' coming within 2pts of last Thursday's high.
VIX was naturally ground lower, and is now close to levels from last Thursday morning.
Right now, best guess is that Mr Market will want to washout some of the weaker bull hands before opex/weekend. At best.. the mid sp'2140s look viable, before whipsawing back upward. Considering the new historic highs in the Dow/R2K, a Nov' close in the 2200s is clearly within range.
The 'old leader' - Transports, is racing to catch up, with a new high of 8844, the best level since May 2015. The Nov'2014 historic high of 9310 still looks a few months away.
Equity bears can't get confident unless a break back under the 8k threshold, which frankly now looks like a damn solid floor, that will likely hold for much.. if not all of 2017. Anyone doubt 10K tranny within 6-12 months?
Meanwhile... on clown finance TV...
... and on that image...
Goodnight from London