Time for another rate hike

US equity indexes closed moderately higher, sp +10pts at 2440 (intra low 2431). The two leaders - Trans/R2K, settled higher by 0.7% and 0.5% respectively. VIX settled -9.1% at 10.42. Near term outlook offers a washout within the 2410/2390 zone, before the broader trend reasserts itself. The 2500s appear a given by late September.


sp'daily5

VIX'daily3

Summary

US equities opened moderately higher, and clawed higher all the way into the closing hour. There were new historic highs for the Dow and NYSE comp'.

Volatility was under particular pressure, with the VIX knocked lower by a very significant -9.1% to the mid 10s. Its possible we'll see a flash print of the 9s on Wednesday, but a foray to the 13/14s seems very viable before the weekend.
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Special note about tomorrow

The short-term cyclical setup favours the equity bears tomorrow, and more so, for Thursday.

If the market does see another sig' wave lower, look for many within the mainstream to blame the equity weakness to the fed raising rates. That would be a gross mis-attribution. First, the rate hike is expected. Second, the short term cyclical setup for Wed/Thursday will favour a wave to the downside.

Tomorrow will be rather interesting!

*Extra charts after 7pm EST @ https://twitter.com/permabear_uk

Goodnight from London
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