Wednesday, 18 April 2018

Closing Brief

US equity indexes closed a little mixed, sp +2pts at 2708. The two leaders - Trans/R2K, settled +1.7% and +0.2% respectively. Near term outlook offers Thursday cooling, but the market looks comfortably on track for a second consecutive net weekly gain.



closing hour action: further micro chop, as market volume remains very light indeed. leaning fractionally weak into the close.

*awaiting AXP earnings, which should be fine, but like many financials... it looks s/t vulnerable. 
Also due: Alcoa (AA)

... and that concludes Wednesday. A day of mostly minor chop. We're seeing some rather quirky post earnings reactions in some stocks, but the underlying issue... earnings are coming in broadly superb.

notable stock: BAC, daily

Note last Friday's bearish engulfing candle, and then two consecutive black-fail candles. Today's weakness shouldn't be much of a surprise, as many of the financials are struggling despite earnings continuing to come in fine. If BAC sees a daily close <29.00, the 200dma will be tested in the mid/upper $27s. Due a bearish macd cross, and indirectly suggests the main market will see a red Thursday

Here in my part of world...

A rather perfect end to the day. A touch of summer warmth, 74f, and the next few days should be equally fine. Have a good evening.

more later on the VIX and Indexes by 6pm EST