Friday 29 September 2017

A sixth consecutive monthly gain

US equity indexes ended the week/month/Q3 on a positive note, sp +9pts at 2519. The two leaders - Trans/R2K, settled higher by 0.3% and 0.1% respectively. VIX settled -0.4% at 9.51. Near term outlook still offers a minimal tag of 2471/61, but more broadly, the year end target of 2683 is on track.




US equities opened in fractional chop mode, but soon reverted back to algo-bot upward melt. There was a quintet of index highs: sp, nasdaq comp, nyse comp, r2k, and the trans. The only index that missed out was the Dow, held back by CVX, XOM, MRK, and NKE.

Volatility was itself subdued, breaking a new multi-week low, settling in the mid 9s.

Bonus chart: sp'monthly3

A sixth consecutive net monthly gain, some 126pts (5%) above the key 10MA. A bearish monthly close (<10MA) seems very unlikely for the remainder of the year. Indeed, the original year end target (as published in January) of 2683 remains on track. To reach target will argaubly require WTIC $55/60 for energy stocks, and one further rate hike to inspire the financials.

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Extra charts in AH (usually around 7pm EST) @

Goodnight from London

*the weekend post will appear Sat'12pm EST, and will detail the World monthly indexes.