A natural bounce

US equity indexes closed moderately higher, sp +7pts at 2465 (intra high 2469). The two leaders - Trans/R2K, settled higher by 0.5% and +0.2% respectively. VIX -4.9% at 11.63. Near term outlook offers the 2430/20s within 2-4 trading days. More broadly, the key 2400 threshold looks set to be at least briefly broken this Sept/Oct.


sp'daily5

VIX'daily3

Summary

US equities continued the bounce from the Tuesday afternoon low of sp'2446. The closing hour saw an intra high of 2469.64, just fractionally shy of the upper gap zone of 2470/76. Its possible that might be partly filled tomorrow, but broadly.. renewed weakness to the 2430/20s seems very probable.

With equities continuing to claw upward, the VIX was in melt mode, settling lower in the mid 11s. If sp'2430/20s within the near term, that should equate to VIX back in the mid teens. For the key 20 threshold, we'll surely need sp<2400, and that looks far more viable in late Sept/early Oct'.
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Sunset, 2.25pm EST... as summer is waning

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Goodnight from London
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