Christmas Eve Wrap

US equity indexes closed Christmas week moderately mixed, sp -3pts @ 2060, whilst the two leaders - Trans/R2K, both settled +0.1%. The VIX saw micro chop, settling +1.1% @ 15.74. Near term outlook is for the sp' to break above the FOMC high of 2076, and push into the 2100s.


sp'daily5

Trans, daily

VIX'daily3

Summary

Little to add.

A naturally subdued end to the short Christmas trading week.

Some might look to the VIX daily candle as a spike floor/hammer, as indicative of a floor/turn, but I'm quite dismissive of it. Equity bears don't look to have any realistic chance of sustained downside until at least the latter half of January.

Goodnight from London