The war talk continues

US equity indexes closed somewhat mixed, sp -5pts at 2496. The two leaders - Trans/R2K, both settled +0.1%. VIX settled +6.5% at 10.21. Near term outlook offers the sp'2474/61 zone. Things would get 'real interesting' with a Sept'/Q3 settlement <2471, which really isn't that bold a target.


sp'daily5

VIX'daily3

Summary

US equities opened a touch weak, but then saw a sharp down wave on comments from the NK foreign minister that Trump's weekend comments amounted to a declaration of war. Yet the equity downside was only moderate, with the VIX showing just a little concern in the 11s. Indeed, the R2K broke a new historic high of 1455, reflective of underlying main market strength.

The afternoon saw a minor bounce, but notably settling broadly weak, with VIX managing to settle outside of the 9s. Near term offers the sp'2474/61 gap zone, which will likely equate to VIX 12/13s. To see 14s or higher, will surely need sp'2450 or lower. That does look likely though, and it won't require anything nightmarish happening in east Asia.
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Here in the metropolis... grey horror. In the distant background, the towers clad in flammable Arconic (ARNC) products are finally being stripped. I wonder if I'll get at least party invoiced a few dimes for that via local taxation.

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Goodnight from London
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