Tuesday 29 August 2017

Sporadic spooky news

US equity indexes closed a little higher, sp +2pts at 2446. The two leaders - Trans/R2K, settled higher by 0.9% and 0.1% respectively. VIX settled +3.4% at 11.70. Near term outlook still offers a hit of prime target of 2462, before high probability of a 4-5% down wave in Sept/Oct.




Sporadic 'spooky news' - as I like to call it, will always be a problem to the equity bulls. Yesterday afternoon (around 5pm EST), saw a missile launched from North Korea, flying over Japan, and landing somewhere in the western pacific.

Will things spiral out of control in east Asia this Sept/Oct? Or will the DPRK continue to play their little games? Perhaps the biggest unknown is whether Trump will just decide to launch an all out pre-emptive strike. Perhaps you remember what the Chinese leadership said recently?

As for the US equity market, we saw an opening low of sp'2428, notably filling the gap zone from August 22nd. The key low of 2417 comfortably held (including overnight futures trading - with a low equiv' to 2422). There was a notable reversal from the open, and the market battled upward all the way into the close.

Market volatility jumped, with a pre-market high of 14.34, opening at 13.33, but then cooling across the day, settling in the 11s. Near term outlook still offers the sp'2462/68 zone, which should equate to VIX 10s.

No sunset for the equity bears

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

Goodnight from London

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