May settles weak

US equity indexes ended May on a rather bearish note, sp -18pts (0.7%) at 2705. The two leaders - Trans/R2K, settled -1.5% and -0.8% respectively. VIX settled +3.3% at 15.43. Near term outlook offers Friday capitulation to sp'2671, before resuming upward, as the 2800s still look due.


sp'daily5

VIX'daily3

Summary

US equities opened a little weak, with a morning low of 2707, and then a bounce to 2722. The afternoon saw renewed downside, as the EU issued an announcement on retaliatory tariffs. Minimum target of 2702 was achieved, with secondary target of 2671 very viable before the weekend.

Volatility naturally picked up, with the VIX settling in the mid 15s. If we see the sp'2670s on Friday, that should result in VIX 17/18s.
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Bonus chart: sp' monthly

Despite the bearish end to the month, the sp'500 was net higher by 57pts (2.2%). Note the settlement well above the key 10MA at 2641.
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No sun for the equity bulls into end month

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Goodnight from London
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