US equity indexes closed broadly higher, sp +13pts @ 2259. The two leaders - Trans/R2K, settled -0.1% and +0.1% respectively. VIX settled -7.0% @ 11.75. Near term outlook offers a retrace, but broadly.. the US market is unquestionably hyper-strong.
A sixth consecutive net daily gain for the sp'500.
With equity indexes managing to keep pushing higher, the VIX was re-crushed back into the 11s.
For now, there is zero sign that the market is exhausted. Even with the Fed set to raise rates next week - which the market has clearly accepted as 'due', is the market merely going to keep clawing higher all the way into early 2017 without any degree of retrace?
A week for the bulls
A powerful net weekly gain of 67pts (3.1%). Its notable the upper weekly bollinger is in the 2230s, and the market is clearly on the extended side. Its ironic that many are now resigned to the 2300s, whether by year end.. or more viable.. in January. Further out, the 2400/500s are now consensus for 2017, with Bank of America recently touting a bullish case of the 2700s.
In any case... I think many are starting to settle into a pre-holiday mode... with just 14 trading days left of the year.
Goodnight from London
*the weekend post will appear Sat' 12pm EST, and will detail the US monthly indexes