Tuesday 16 August 2016

A trio of new historic highs

US equity indexes closed moderately higher, sp +6pts @ 2190 (intra high 2193). The two leaders - Trans/R2K, settled higher by 0.6% and 1.0% respectively. VIX settled +2.2% @ 11.81. Near term outlook remains bullish, as the 2225/50 zone looks due by mid September.




New historic highs for the sp', dow, and Nasdaq comp' to begin the week, which is about as bullish as it gets.

VIX remains naturally subdued, unable to even break into the low teens. Talk of single digit VIX around the Labor day holiday (Sept'5th) can begin.

notable strength, UK, monthly

An eighth consecutive net daily gain of 0.4% to 6941 - the highest level since June 2015. The 7k threshold is approaching even faster than I had thought possible. Any monthly close >7K - whether August, or beyond, will be an extremely bullish sign, not just for the UK market, but across the EU... and indeed...the world.

Goodnight from London