A little cooling

US equity indexes closed broadly weak, sp -11pts @ 2201. The two leaders - Trans/R2K, settled lower by -0.9% and -1.3% respectively. VIX settled +6.6% @ 13.15. Near term outlook offers high probability of cooling to the 50dma in the sp'2160s in early December. Broadly though, the US market is unquestionably super strong.


spdaily5

VIX'daily3

Summary

It was not exactly the most exciting day to start the week.

It would seem sp'2213 was a short term high, and we're in the process of a retrace of at least 2%, that should see the sp'2160s, where the 50dma will be lurking in early December.

VIX is naturally starting to tick upward, but at best, even if sp'2160s, we'll likely see no higher than 16/17s. Even with the fed raising rates Dec'14th, its difficult to see VIX breaking above the key 20 threshold.
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The Bullish November

sp'monthly3c

Regardless of any further cooling across the next two days, November is set to close powerfully bullish, especially after a quartet of new index highs.

Goodnight from London