Tuesday 15 November 2016

The R2K follows the Dow

US equity indexes closed very mixed, sp' u/c @ 2164. The two leaders - Trans/R2K, settled higher by 2.2% and 1.2% respectively. VIX settled +2.2% @ 14.48. Near term outlook offers a moderate retrace to the 50dma around sp'2144. Broadly though, with new historic highs in the Dow and R2K, the market is very strong.




A pretty mixed start to the week, with the headline indexes - sp/dow/nasdaq seeing minor chop, leaning on the slightly weaker side.

The market is arguably just consolidating after last weeks hyper-rebound. It is opex week, so a fair amount of chop can be expected.

A close second to the USD breaking above the DXY 100 threshold, was the new historic high in the R2K of 1306.

R2K, monthly

The R2K is now a massive 9% higher, and we're only halfway through the month! Upper bollinger will be offering the 1320s in early December. Anything >1350 looks out of range until Jan/Feb' 2017. In any case though, the current monthly candle is powerfully bullish, and it solidifies last week's low of 1156 as a key floor.

Equity bears have no right to tout anything unless R2K <1156, and that is around 12% lower!

Goodnight from London