Tuesday 2 July 2019

VIX and Index update

US equity indexes closed rather mixed, sp +8pts (0.3%) at 2973. Nasdaq comp' +0.2%. The two leaders - Trans/R2K, settled -0.8% and -0.6% respectively. Near term outlook offers moderate chop into the holiday break.

sp'daily5



Transports



Summary

spx: a day of mostly minor chop, seeing a low of 2955, but ending the day with a mini ramp, settling +8pts (0.3%) to 2973. Daily RSI 67s is certainly on the high side. Whilst Wednesday will lean to pre-holiday chop, the market will be vulnerable on Friday with the jobs data.

trans: settling -85pts (0.8% to 10420, as yesterday's spiky black candle played out. We have a macd cyclical rollover. At the current rate, we'll see a bearish cross in 2-3 days.



VIX'daily3



With equities in chop mode, volatility remained subdued, swinging from a high of 14.30, to settle lower for a fifth consecutive day, -8.0% at 12.93, the lowest close since May'3rd.

Looking ahead by 6pm EDT