Thursday, 5 May 2016

Closing Brief

US equities closed on broadly weak, sp -0.5pts @ 2050. The two leaders - Trans/R2K, settled lower by -1.1% and -0.5% respectively. Near term outlook offers a break of the sp'2040 threshold. The big unknown is whether the two soft lows of 2039/33 will hold. A weekly close in the 2020s would lead to 2000/1990s, before next bounce.



*closing hour action: not surprisingly... just more minor chop

Frankly, not much to say about today.

After two days of decline.. a day chop.. as market was content to enter a holding pattern ahead of the next key econ-data.

From a pure cyclical perspective, the setup arguably favours the equity bears, not least as the daily/weekly cycles are swinging increasingly toward the bears each day.

Have a good evening.

*earnings due: GPRO, WYNN, and SQ.

more later... on the VIX