Thursday 7 September 2017

Moderately choppy

US equity indexes closed moderately mixed, sp -0.4pts at 2465. The two leaders - Trans/R2K, settled +0.4% and -0.2% respectively. VIX settled -0.7% at 11.55. Near term outlook offers a sig' wave lower to at least 2445/40 zone within 1-3 days. More broadly, the 2350s seem probable by early October.




US equities opened fractionally higher, saw a moderate swing lower (intra low 2460), and then further chop across the afternoon. Its notable that underlying MACD cycle remains on the high side, and in theory, the market could cycle lower for a good 3-6 days.

Market volatility remains relatively subdued. Today's low of sp'2460 was only enough to generate VIX 12.07, before cooling back to the mid 11s. Near term offers at least the 2445/40 zone, which should equate to VIX 14/15s. Things would get real interesting with any price action above the recent high of 17.28. The key 20 threshold will surely be seen between now and mid October.

Something to consider...

GE, monthly

I recognise that some will say '.. ohh, but it doesn't matter anymore', but I still see General Electric as an important global company, and one to consider as reflective of the global market/economy. Its been a rough year for GE, and with the loss of the $27s, the stock is already close to the key $22 threshold.

If the $22s are lost, other than soft psy' level support at $20, the next big threshold is not until the $13s.

Main market implications into 2018? Your comments are most welcome on this issue.

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Goodnight from London