Were you spooked?

US equity indexes closed moderately weak, sp -5pts at 2394 (intra low 2381). The two leaders - Trans/R2K, settled lower by -0.4% and -0.7% respectively. VIX settled +3.8% at 10.60. Near term outlook offers chop (leaning bullish) into the weekend. By mid/late June, the 2440/60 zone will be a valid target.


 sp'daily5

VIX'daily3

Summary

US equities opened moderately lower, and saw a morning low of sp'2381. There was then a rather standard latter day recovery.

Volatility popped to the low 11s in early morning, but as equities recovered, it naturally cooled back into the 10s. Any price action >12 looks out of range, as the US capital markets are supremely confident about the mid term.


Were YOU spooked?

I ask, because reading around just a little, if you didn't know the actual equity declines, you might have guessed we were net lower by 2-3%. There is still some truly bizarre bearish hysteria (from the usual sites) on even minor/moderate down waves.

It remains the case that most have near ZERO balance on what is going on. Most have ZERO perspective on the grander picture. I continue to endeavour to provide a broad and balanced overview (not least via my monthly post on other world markets), but I fully recognise... many of you simply don't want to hear it.
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Bullish summer sun

Goodnight from London
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