Tuesday, 20 October 2015

Closing Brief

US equities closed moderately mixed, sp -2pts @ 2030 (intra high 2039). The two leaders - Trans/R2K, settled +0.6% and -0.1% respectively. Near term outlook is for continued upside, with all indexes set to test their respective 200dmas.


sp'60min


Summary

*closing hour action: continued micro chop
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Well, a third day of price chop.. but with continuing underlying upside.

I can understand why some might already be scaling into market-shorts, but for now... there is zero sign of a trend change.. as particularly reflected on the bigger daily/weekly charts.

The ultimate issue remains whether the market will see a strong reaction around the 200dma. Right now... equity bears look to have a real problem. The market will have two (ECB/ FOMC) excuses to keep on pushing higher into November.

Aside from some individual stocks, this is no market to be short.

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more later... on the VIX