Wednesday 19 October 2016

Naturally cycling upward

US equity indexes closed moderately higher, sp +13pts @ 2139. The two leaders - Trans/R2K, settled u/c and +0.6% respectively. VIX settled -5.7% @ 15.28. Near term outlook offers no higher than the 2161/63 gap zone, and then viable downside to around 2080/70.




Cyclically the market was due some upside today, and we certainly saw some, but price action was notably shaky at times. Each point higher is seeing some sellers start to appear, and many recognise that there just aren't many willing buyers ahead of the election.

Best guess.. renewed weakness to the 2080/70 zone - where the 200dma is lurking, before a whipsaw higher. Equity bulls should be seeking to end the month somewhere in the 2100s.

Goodnight from London