A powerful week for the equity bulls

US equity indexes closed very mixed, sp -3pts @ 2164. The two leaders - Trans/R2K, settled higher by 0.2% and 2.4% respectively. VIX settled -3.9% @ 14.17. Near term outlook offers cooling to around sp'2144, which should equate to VIX 17s. Broadly, the market looks headed powerfully higher into.. and across 2017.


sp'daily5

VIX'daily3

Summary

A day of moderate chop, although there was some notable strength in the R2K, which came to within nearly 1% of breaking the 2015 high of 1296.

VIX hit a high of 16.00 - with sp'2152, but was then ground lower into the close.. as there just isn't any underlying fear. Even the 17s will be a stretch next Monday, if the 50dma (sp'2145/46) is tested.


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sp'weekly1b

The gradual choppy cooling from the August high of sp'2193 has decisively ended. We have a key mid term low of 2083. With the Dow already breaking a new historic high in the 18800s, the sp'500.. and other indexes can be expected to follow.

Goodnight from London
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*the weekend post will be on the US monthly indexes