Monday, 19 October 2015

Closing Brief

US equity indexes closed fractionally higher, sp +0.6pts @ 2033 (intra high 2034). The two leaders - Trans/R2K, settled higher by 0.3% and 0.2% respectively. Near term outlook is for a test of the 200dma of sp'2059/60. Even if the market stalls and reverses.. it will not negate the threat of a second upside break attempt in Nov/Dec.



Little to add... on what was a mere consolidation day, before the market resumes higher into the sp'2040s.. and probably another 1% on top of that.

Equity bears should be extremely concerned about the looming ECB meeting this Thursday.. where Draghi could easily threaten increased QE and send the market on another cascade higher.

For the moment, there appears ZERO reason to be short anything.

more later... on the VIX