Monday, 3 August 2015

Closing Brief

US equity indexes closed broadly lower, sp -5pts @ 2098. The two leaders - Trans/R2K, settled +0.3% and -0.6% respectively. Near term outlook offers further downside, at least to the recent low of sp'2063. However, any daily closes under the (still rising) 200dma will offer stronger downside to the 2050/25 zone.



*closing hour saw some moderate recovery, but broadly, it makes little difference.

... a second day for the equity bears.

Those seeking new historic highs in the sp'500 in the near term are facing a real problem right now. This is reflected in the bigger weekly/monthly cycles, but also in a great many individual stocks.

Today, with AAPL losing the $119s, we saw a clear warning signal that one of the more stable stocks has decisively broken.

.. the rest of the market looks set to follow across the next two months.

more later... on the VIX