Tuesday, 27 February 2018

Powell induced swing

US equity indexes closed on a significantly weak note, sp -35pts (1.3%) at 2744. The two leaders - Trans/R2K, settled -2.3% and -1.5% respectively. VIX settled +17.7% at 18.59. Near term outlook offers renewed upside to the 2800s in March. More broadly, big target remains the 2950/3047 zone.




US equities opened fractionally mixed, but then clawed upward to a morning peak of 2789, notably just 11pts shy of the 2800s. As Powell was questioned by the US house, the algo-bots used some of the comments on inflation and rate hikes, to knock the market lower, settling the day at 2744.

With equities leaning a little weak, the VIX picked up, battling back into the 18s.

Bonus chart: Russia, monthly

I recognise most will not see the relevance, but the Russian equity market has swung from an intra month low of 1177, and is currently net higher by 2.5% at 1313. Big target is psy' 1500, and that is clearly some months away. Indirect bullish implications for other world markets, and that includes the USA.

Sunshine between the snow showers.
Extra charts in AH (usually around 7pm EST) @ https://twitter.com/permabear_uk

Goodnight from London
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