Wednesday 11 January 2017

Underlying sunny strength

US equity indexes closed moderately higher, sp' u/c @ 2268. The two leaders - Trans/R2K, settled higher by 0.8% and 1.0% respectively. VIX settled -0.6 @ 11.49. Near term outlook offers further upside to the low sp'2300s - along with Dow 20k, before the 3 day holiday weekend.




It was once again a case where the market opened a little weak, but there is simply no real downside power, as there just aren't many sellers.

Price action remains pretty quiet, but will likely pick up dramatically this Friday, when the financials start to report. Those are likely to 'inspire' the mainstream into something of a mild bullish hysteria. It should be rather entertaining to watch.

As for VIX... its naturally subdued... as even the 13s look out of range for the rest of this week. The key 20 threshold looks out of range until mid Feb'.. when perhaps we'll see a test of the rising monthly 10MA in the low 2200s.

Here in the metropolis...

Another day closer to summer, and that has to be bullish, yes?

Goodnight from London