Tuesday 7 February 2017

Many are seeking a retrace

US equity indexes closed moderately weak,  sp -4pts at 2292. The two leaders - Trans/R2K, settled lower by -0.1% and -0.8% respectively. VIX settled +3.6% @ 11.37. Near term outlook offers another push into the 2300s, as another 1-2% to the upside seems due, before a realistic threat of a 5% main market retrace.




There is little to be said, other than it was a pretty subdued start to the week.

VIX remains naturally subdued, still consistently sub-teens. A test of the key 20 threshold looks a stretch in March.. even if cooling to the sp'2230/00 zone.

Meanwhile... on clown finance TV...

Dwyer of Canaccord Genuity represents a view held by many - myself included, that the US equity market is due a retrace... something on the order of 5% or so. As things are, I'm looking for another 1-2% higher.. before a realistic opportunity for a down wave of around 5% lower. I don't see any price action under sp'2200 in the near/mid term.

Goodnight from London