Thursday, 10 August 2017

Equities whacked

US equity indexes closed significantly lower, sp -35pts at 2438. The two leaders - Trans/R2K, settled lower by -1.2% and -1.7% respectively. VIX settled +44.4% at 16.04. Prime target of sp'2435 is due on Friday. Things would turn exceptionally bearish with a weekly close of sp <2425 and VIX >15.20.




US equities opened moderately lower, and for the first time since May 17th, the market slid lower across the day. Even Trump didn't help in the late afternoon, as he complained about himself not making 'strong enough' remarks about North Korea.

With equities significantly lower, market volatility jumped at the open, and climbed across the day, with the VIX settling at the highest level since Nov'8th 2016.

A special note

For those of you who don't subscribe to me, I wanted to make something clear, as the next post here will not be until after the Friday close.

If we see a Friday close <sp'2425, and with VIX settling in the 14s (>15.20 to be decisive), it would merit alarm bells for next Monday.

If both of those parameters are seen tomorrow - around 3.45pm EST, the cautious bulls will bail into the weekend.

... and the bolder bears will launch 'mini-crash' speculative short positions into the weekend.

Sunset, London city, 3.20pm EST

Extra charts in AH (usually after 7pm EST) @ 

Goodnight from London