sp'daily5
VIX'daily3
Summary
Equities opened moderately lower, seeing an early floor of 2757. Once again, there was a latter day recovery, with the sp' settling just a little lower at 2773. The daily candle was a hollow red reversal, which is normally a sign of a s/t floor. However, we do have another lower high and a lower low, which is supportive of further weakness. Underlying MACD (blue bar histogram) cycle is set to turn negative on Tuesday, and that offers first opportunity of significant and sustained downside. In theory, 2734 is a magnet, with prime technical target of 2718. The latter really should be seen.
The R2K broke a new historic high, and is a reminder of underlying m/t market strength.
Volatility remains broadly subdued, with the VIX seeing the upper 13s, but settling in the mid 12s. The 15/16s look due in the immediate term.
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Goodnight from London
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