Closing hour drama

US equity indexes closed on a very weak note, sp -13pts (0.5%) at 2713. Nasdaq comp' -0.9% at 7502. The two leaders - Trans/R2K, settled -0.8% and +0.3% respectively. VIX settled +3.5% at 16.14. Near term outlook offers Thursday cooling. Most bearish case would be 2671.


sp'daily5

VIX'daily3

Summary

Opening moderate gains, and then a great deal of minor chop... to be expected for a lead into a holiday break. However, there was closing hour drama, as a Chinese court ruled against Micron (MU), and that literally dragged the entire market lower. The closing hour was indeed ugly, seeing a low of 2711.

Volatility was in melt mode until the equity closing hour drama, with an upward spike to settle the VIX a little higher in the low 16s. If sp'2698 is broken early Thursday (the s/t cyclical setup offers it), then old target of 2671 will be viable. 

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Enjoy the holiday break!

*the next post will appear Thursday, by 6pm EDT.
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