Friday, 2 December 2016

WTIC oil continues to soar

US equity indexes closed moderately mixed, sp -7pts @ 2191. The two leaders - Trans/R2K, settled +0.6% and -0.6% respectively. VIX settled +5.5% @ 14.07. Near term outlook threatens a test of the 50dma in the 2160s - which would likely equate to VIX 16/17s.




It was another moderately mixed day in equity land, with the sp' settling moderately lower for a second consecutive day. There was notable weakness in the Nasdaq comp', which has now cooled almost 3% from the recent historic high of 5403.

VIX managed a second consecutive daily gain, already coming close to the 15s.

Note the equity and VIX MACD cycles... they are respectively set for a bearish and bullish cross at the Friday open.

At best.. a test of the 50dma in the sp'2160s.. with VIX 16/17s.

Meanwhile... in crazy commodity land...

WTIC, monthly

It was a second consecutive day of powerful gains for WTIC oil, settling +$1.62 (3.3%) @ $51.06. 

My target of the $60 threshold doesn't seem so crazy now, does it? Anyone remember the inverse H/S - as particularly seen in many energy stocks, is suggestive of 70/75 next year? You can extrapolate and do the math.. to have a fair idea of where the market will be next year.

Goodnight from London