Another day of moderate chop

US equity indexes closed moderately weak, sp -5pts at 2578 (intra low 2566). The two leaders - Trans/R2K, both settled lower by around -0.3%. VIX settled +0.8% at 10.59. Near term outlook offers further moderate swings into Friday opex. More broadly, the 2650/700 zone remains viable into year end.


sp'daily5

VIX'daily3

Summary

US equities opened a little weak, cooled to 2566, and then hyper spiked. The 2565/66 threshold has indeed been rather important across the last few weeks. Whilst the bulls are struggling to break into the 2600s, neither are the bears able to muster any sustained/significant downside.

Volatility climbed in the morning, with a notable higher low of 12.61, but settling in the mid 11s. The key 20 threshold looks well out of range for the rest of the year, unless things turn hot in the middle east or NK.

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Goodnight from London
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