Spike floor

US equity indexes closed moderately weak, sp -5pts at 2629. The two leaders - Trans/R2K, settled -0.3% and -0.5% respectively. VIX settled -0.4% at 15.90. Near term outlook offers upside (if choppy) into the weekend. Things will only turn decisively bullish with a few closes >2720s.


sp'daily5

VIX'daily3

Summary

US equities opened moderately weak, and quickly imploded, breaking the key 200dma (sp'2614/15). That break saw another tranche of bulls washed out. From a morning low of 2594, the market very powerfully rebounded, even turning fractionally positive in the late afternoon.

With equities breaking support in early morning, the VIX spiked (intra high 18.66). With the subsequent rebound, the VIX rapidly cooled, even settling fractionally lower in the upper 15s. Its notable that despite a brief break of equity core support, the VIX didn't soar above the key 20 threshold. Despite the twitchy mainstream, underlying capital market confidence remains strong.

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