Monday, 23 October 2017

A mixed start to the week

US equity indexes closed moderately weak, sp -10pts at 2564 (intra high 2578). The two leaders - Trans/R2K, settled lower by -0.3% and -0.8% respectively. VIX settled +11.0% at 11.07. The gap zone of sp'2474/61 remains a technical necessity, but until last Thursday's low of 2547 is taken out, the bears have no right to be confident.




US equities began the week on a mixed note, with a quartet of index historic highs (if only fractional) in early morning, but increasing weakness in the afternoon.

The daily candle was of the bearish engulfing type - breaking last Friday's high, but settling below the Friday open. This is a rather bearish signal, and could finally mark a s/t top. To be clear though, rising trend from 2488 is still intact, and unless we break last Thursday's low of 2547, I don't think equity bears can be remotely confident that a 4% cooling wave is underway.

Market volatility remains broadly subdued, with the VIX settling the day in the low 11s. First soft target are the mid 12s.

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

Goodnight from London

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