US equity indexes closed broadly higher for a third consecutive day, sp +25pts @ 2084. The two leaders - Trans/R2K, settled higher by 1.2% and 0.9% respectively. Near term outlook is extremely borderline, but clearly.. leaning bullish, as the 2100 threshold is within striking distance.
*closing hour action: a new intra high, and absolutely ZERO sign of a ceiling/turn.
Upper hourly bollinger will be 2090/92 at the Wed' open, with the key 2100 threshold easily within range.
So, a third day higher, and the Friday low of 2039 is now a clear 2% lower.
That sure doesn't exclude the possibility we still close net lower on the week, but it will be damn difficult. Where will the catalyst come from to kick the market significantly back lower?
Cyclically, we're due a down cycle tomorrow.. and one that should stretch into Thursday.
However, until we're back under the price cluster zone of 2050.. and more so.. the Friday low of 2039, equity bears should be seriously spooked right now.
I sure am.
Awaiting earnings from Disney (DIS)....
4.16pm... $1.36 vs. 1.40 exp
Rev. 12.97 vs 13.19 exp.
So.. its a marginal miss... but Mr Market is provisionally annoyed.. with DIS -6% in the $99s.... and that takes out a fair few aspects of support.
more later... on the VIX