The long weekend

US equity indexes closed broadly weak, sp -15pts at 2328. The two leaders - Trans/R2K, settled lower by -1.1% and -1.0% respectively. Near term outlook is uncertain, and will be dependent on whether anything 'spooky' happens in North Korea this weekend.


sp'daily5

VIX'daily3

Summary

It was another day of moderate swings, as equities opened a little lower, saw an early reversal, but with very few willing to buy ahead of the long weekend, the minor gains were simply not sustainable.

There was a distinct case of the 'rats selling into the long weekend'. This was very understandable as there are indeed a fair few valid geo-political concerns, not least about North Korea.

Market volatility remains somewhat elevated in the mid teens. The key 20 threshold still looks out of range, unless there is some kind of 'mayhem' in North Korea. On balance, the VIX really should cool into end month.. back to <13, as earnings and econ-data, should come in at least 'reasonable'.

Goodnight from London
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*the weekend post will appear early, Friday, 12pm EST, and will detail the US weekly indexes