Wednesday, 12 April 2017

Pre-Easter washout

US equity indexes closed moderately mixed, sp -3pts at 2353 (intra low 2337). The two leaders - Trans/R2K, settled -0.4% and +0.7% respectively. VIX settled +7.3% at 15.07. Near term outlook offers further moderate swings, with a Thursday/weekly settlement somewhere within the 2350/70 zone. A push to new historic highs in the 2400s is still on the menu before end month.




I can kinda understand if some of the equity bears were a little excited this morning, as last Monday's spike floor of 2344 was taken out. Yet, there was a rather typical latter day recovery. The closing candle was a very stark reversal candle.. with a pretty powerful spike floor.

Volatility was significantly higher, seeing an intra high of 15.88, the highest level since Nov'11th 2016. Naturally, as equities recovered into the afternoon, the VIX cooled to the low 15s.

Keep in mind, its a short week... many traders aren't even around, and on balance, the remaining two trading days left of the week will surely just be further moderate swings.

Goodnight from London