Leaning weak into Christmas

US equity indexes closed moderately weak, sp -4pts @ 2260. The two leaders - Trans/R2K, settled lower by -0.8% and -0.9% respectively. VIX settled +1.4% @ 11.43. Near term outlook offers further weakness to the 2243/31 zone. Broadly though, the 2400/500s seem a realistic target for summer 2017.


sp'daily5

VIX'daily3

Summary

The market opened a little weak, but it was more than enough to break rising trend that stretches back to early November.

VIX reflected the equity break of trend, breaking above the short term downward trend.

On balance, the sp'2243/31 zone - which might equate to a brief spike to VIX 13/14s. The key 20 threshold looks out of range for at least a month.
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The days are getting longer.. and the nights are getting shorter. The long battle toward summer 2017 has begun :)

Goodnight from London