US equity indexes closed broadly weak, sp -11pts at 2557. The two leaders - Trans/R2K, settled lower by -1.6% and -0.5% respectively. VIX settled +0.6% at 11.23. With the break of last week's low of sp'2547, it gives confidence that Monday's high of 2578 was a s/t peak. Primary target remains 2474/61 into early November.
US equities opened fractionally weak, but with a break of rising trend, the market actually spiralled lower, notably breaking below last Thursday's low of sp'2547. The break of trend and last week's low give confidence that we have a s/t peak of sp'2578. Primary target remains the Sept'11th gap of 2474/61.
With equities on the slide, the VIX built very sig' gains, breaking into the 13s, but cooled back to settled just fractionally higher in the low 11s.
Primary target of the Sept'11th gap of 2474/61 looks highly probable, and is technically no different than the July 12th gap. Its just taken considerably longer than expected. The issue will be to keep in mind that the m/t trend remains powerfully bullish, as also reflected in markets across the world.
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