US equity indexes closed broadly higher, sp +10pts at 2415 (intra high 2418). The two leaders - Trans/R2K, settled higher by 1.6% and 0.1% respectively. VIX settled -0.3% at 9.99. Near term outlook offers a little cooling to 2409/04. Any sustained price action under 2400 now looks unlikely.
So much for any weakness ahead of the Memorial day break, as we saw new historic highs for the sp'500 and Nasdaq comp'. Market volatility remains very subdued, with the VIX once again cooling into the 9s.
I'm well aware of some of the very bearish chatter out. A fair few are touting a decline to around the 200dma. That will be in the sp'2270s in early June, and is clear 5% lower. Is it possible? Sure, but just what excuse could the market use to see that kind of down wave?
Other than something 'nuclear' in North Korea... I can't think of anything.
Podcast from Coffey and Dr J.
Just another sunny evening in the city.
Goodnight from London