Thursday, 12 October 2017

VIX and Index update

US equity indexes closed moderately mixed, sp -4pts at 2550. The two leaders - Trans/R2K, settled +0.6% and -0.1% respectively. VIX settled +0.6% at 9.91. Near term outlook offers basic target of the micro gap of 2540/37 before the weekend. The 2474/61 gap zone remains a technical necessity, before a more viable chance of the 2600s.





sp: a fractional new historic high of 2555.33, but settling fractionally lower. There are two micro gaps to be filled, but more far more importantly... that of 2474/61. No sustained price action <2460 seems viable for the remainder of the year, as more broadly, the 2600s look a given, as earnings are coming in just fine.

Dow: settling -0.1% at 22841. First support in the 22200s, where the 50dma will soon be lurking. Its arguable that the 22200s would equate to the sp'2474/61 zone.

Trans: a new historic high of 10049. S/t bearish with the main market, but it should be clear, the 11000s are just about viable into year end.


With equities seeing a day of relatively minor chop, the VIX remained broadly subdued, settling +0.6% at 9.91. Near term offers the 11/12s, with sp'2520s. On balance, it would seem sp'2474/61 would equate to VIX in the mid teens, although it will depend on how fast the decline is.

Looking ahead by 6pm EST