Starting positive

US equity indexes closed significantly higher, sp +26pts at 2488. The two leaders - Trans/R2K, both settled higher by 1.1%. VIX settled -11.5% at 10.73. Near term outlook threatens a brief foray into the low 2500s, before another swing lower. A 4-5% retrace to the 200dma remains on the menu.


sp'daily5

VIX'daily3

Summary

With no nuclear explosions in the Korean peninsula, and Hurricane Irma 'better than expected', US equities opened moderately higher, and built significant gains into the afternoon.

As equities climbed, volatility was duly ground lower, with the VIX back in the 10s, which is again reflective of the mainstream's high confidence that 'everything is going to be just fine'.

Despite today, nothing has changed. A 4-5% correction for the main market is due into October. That won't likely be enough though to result in a Sept' or Oct' bearish monthly close.
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Dusk in London city, at a disturbingly early 2.15pm EST.

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Goodnight from London
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