US equity indexes closed broadly weak, sp -20pts at 2419 (intra low 2405). The two leaders - Trans/R2K, settled lower by -0.4% and -0.6% respectively. VIX settled +14.1% at 11.44. Near term outlook offers further weakness to the 2390/80s. Any daily closes <2400 would threaten a gap fill of 2352/48 by July 11th.
US equities opened in minor chop mode, but quickly leaned lower. Things spiralled into the afternoon, as the Tuesday closing low of 2419 was broken under. There was a key break of the 50dma, although settling well above it.
With equities breaking multiple aspects of support, the VIX soared into the afternoon, maxing out at 15.16. This notably filled a gap of 13.25/14.75 from May 19th.
Further downside? The breaks of the 50dma in multiple indexes certainly leans toward the bears. If the market can break under the 2400 threshold within the next 1-5 trading days, then a bonus washout to around 2352/48 is on the menu. That would give the mainstream cheerleaders of clown finance TV a good scare, and that is always a good thing.
A sideline distraction
Today saw the IPO of Blue Apron (APRN). Just a few days ago, many were looking for an initial offering price >$15. Instead, all the market was willing to offer this morning was $10.
Across today it was pretty amusing to see the underwriters - GS, JPM, MS, and Barclays (of the UK) have to periodically initiate an 'infinity support bid', to keep the stock above the $10.00 threshold. In the above screenie, you can see the massively big numbers on the bid side across multiple regional exchanges. Clearly, 'they' won't be doing that for very long.
Is was notable there were a couple of trades that did manage to get through the 'infinity support bid', just after the close.
Podcast from Coffey and Dr J.
Awaiting the weekend...
Tomorrow will be important, as its not just the weekly close, but end month, Q2, and the first half. For those with an interest in the bigger picture, this weekend's post covering the World monthly indexes will be a must-read!
Extra charts in AH @ https://twitter.com/permabear_uk
Goodnight from London