Reversing upward

US equity indexes closed on a slightly mixed note, sp -2pts at 2341 (intra low 2322). The two leaders - Trans/R2K, settled higher by 0.1% and 0.2% respectively. VIX settled -3.5% at 12.50. Near term outlook offers upside to 2360/70 into end month. Broader upside to 2425/50 seems a given by late April/early May.


sp'daily5

VIX'daily3

Summary

US equities opened broadly lower, but there was a rather clear reversal underway within minutes. There just aren't many willing sellers at these levels. The sp' daily candle was a classic hollow red reversal.. managing to close above the key 50dma. Its a rather bullish sign.

VIX saw a pre-market print of 15.11, but only managed 14.82 in early trading, and was then ground lower across the day. For much of the day, the daily candle was of the black-fail type, but even managed to turn outright red. The volatility bulls really should be concerned!

On balance.. the market looks prone to battling upward into late April/early May.
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Goodnight from London
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