Wednesday, 2 December 2015

Closing Brief

US equity indexes closed significantly weak, sp -23pts @ 2079 (intra range 2104-2077). The two leaders - Trans/R2K, settled lower by -2.1% and -1.0% respectively. Near term outlook remains unchanged, with further upside to the 2115/20 zone... whether on the excuse of the ECB or the monthly jobs data.



*closing hour action: new intraday lows... no doubt, partly due to the San Ber' event.

Clearly, the afternoon weakness was surprising, but then we had two key excuses.. Oil losing the $40 threshold, and then the latest media shooting event.

Weak bulls have been washed out from the recent low of sp'2080.

It is notable that the daily sp'500 candle was of the bearish engulfing type, and that does bode in favour of the equity bears for tomorrow.

However, would Draghi dare disappoint the EU markets tomorrow?

Best guess remains unchanged... renewed upside to the 2115/20 zone, and it remains entirely viable for a straight run higher into the FOMC... at which time we could be in the 2150/70 zone.

more later... on the VIX