US equity indexes closed broadly weak, sp -23pts (0.9%) at 2699. The two leaders - Trans/R2K, settled -1.4% and -1.7% respectively. VIX settled +12.5% at 17.91. Near term outlook offers secondary target of sp'2671 for Thursday, before finding a floor, and resuming broadly upward across the summer.
US equities were moderately lower in pre-market, but news that the Trump admin might go easier on trade/tariffs via CFIUS, saw (almost) everything flip positive. The market opened a little choppy, and battled to 2746 around 10.40am. From there.... a full bearish reversal, with the sp' turning moderately lower by mid afternoon. The closing hour sure wasn't pretty, with some dynamic swings, and settling right at the low of 2699.
Volatility saw a morning floor of 14.76, but then rebounded, settling in the upper 17s. Near term outlook offers sp'2670s, which should equate to VIX around the key 20 threshold. Next week is a holiday week, and that will favour the equity bulls.
Bonus chart: China, monthly
With just two trading days left of the month/Q2/H1, the Shanghai comp' just keeps on falling, currently -9.1% at 2813. It remains technical open air to the Feb' low of 2638. I have to wonder, are the communists leadership actually trying to punish the capitalists speculators?
Extra charts in AH (usually around 7pm EDT) @
Goodnight from London
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