Wednesday, 18 April 2018

VIX and Index update

US equity indexes closed a little mixed, sp +2pts at 2708. The two leaders - Trans/R2K, settled +1.7% and +0.2% respectively. VIX settled +2.3% at 15.60. Near term outlook offers Thursday cooling, but the market looks comfortably on track for a second consecutive net weekly gain.


Nasdaq comp'


sp: a daily of minor chop. Note the settling black-fail doji candle, which does warn of s/t bullish exhaustion. Thursday's do tend to favour the equity bears. Soft downside would be the lower hourly bollinger, which will be in the 2680/70s tomorrow.

nas: a day of minor chop for tech, with the Nasdaq comp' settling +0.2% at 7295, notably holding above the 50dma. Thursday does threaten some cooling, soft support 7200, with secondary at 7k.


With equities seeing a touch of cooling into the close, the VIX managed a net daily gain (intra high 16.90), settling +2.3% at 15.60. There is a notable upside gap of 19/20, which would surely equate to sig' downside in equities of 1.5-2.0%. Its something to keep in mind across the next few days.

Looking ahead by 6pm EST