A little weakness

US equity indexes closed broadly weak, sp -16pts at 2437. The two leaders - Trans/R2K, settled lower by -1.8% and -1.1% respectively. VIX settled 4.7% at 10.86. Near term outlook offers short term weakness to sp'2415/00, but broader price action remains 'scary strong'.


sp'daily5

VIX'daily3

Summary

US equities opened a little lower, and leaned moderately weak across the day. Its notable that the Dow did break a new historic high of 21535. The very sig' downside in the Tranports though does bode for main market weakness of another 1-1.5% before the weekend.

Market volatility remains broadly subdued, still stuck in the 10s. There is a notable open gap of 13.25/14.75 from May 19th. To see VIX 14s, we'd likely need sp'2400/390s, and that sure won't be easy. In any case, the key 20 threshold looks out of range until at least late Sept/Oct.
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Midsummers eve

4.10pm EST

4.15pm EST

Extra charts in AH @ https://twitter.com/permabear_uk

Goodnight from London
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