Monday, 21 August 2017

Choppy upside

US equity indexes closed fractionally mixed, sp +2pts at 2428 (intra low 2417). The two leaders - Trans/R2K, settled +0.3% and -0.1% respectively. VIX settled -7.5% at 13.19. Near term outlook offers choppy upside to the gap zone of 2462/68. From there, things get real divisive.




US equities opened in minor chop mode, and saw a moderate down wave to floor at sp'2417. There was something of a latter day recovery, with the daily candle offering a somewhat spiky floor. There is basic upside to 2462/68, which is clearly going to mean the market will soon be above the 50dma (around 2450).

The VIX opened a little lower, saw a brief bounce to turn fractionally positive, but was then ground lower all the way into the late afternoon.

Near term offers sp'2462/68, which will probably equate to VIX 11s. Where we go from there... is the grander issue. I'd refer anyone to the weekend post.

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Goodnight from London