Friday 24 March 2017

Bearish end to the week

US equity indexes closed moderately mixed, sp -2pts at 2343. The two leaders - Trans/R2K, settled -0.1% and +0.1% respectively. VIX settled -1.2% at 12.96. Near term outlook still offers threat of a test of the rising 50dma in the low sp'2330s.




It was a day of swings, with morning strength to 2356, but then latter day weakness to 2335 - fractionally breaking the Wed' low.

With equities turning moderately lower in the afternoon, the VIX briefly saw the 14s, before cooling due to a closing hour equity ramp.

As for Trump pulling the healthcare bill, it was never going to be easy, but its clearly a sign of weakness as even some republicans won't support their President. It doesn't bode well for subsequent tax or infrastructure bills, which the market has used as a (valid) excuse for powerful gains since last November.

I would hope we could all agree though, some drama to end the week, is usually a good thing, right?

Goodnight from London
*the weekend post will appear Sat' 12pm, and will detail the US weekly indexes