US equities opened moderately weak, with a rather typical recovery into the afternoon. It was notable that the Transports did break a new historic high, a reminder of underlying m/t price momentum. Despite weak equities, the VIX could only push to the upper 10s, and even settled fractionally lower, reflective of underlying capital market confidence. No one seriously expects a sustained/significant equity down wave any time soon.
Reading around this morning, it was rather bizarre to see how twitchy some were. Did everyone already forget about 2017? Are we really going to have yet another year where the market broadly climbs, but most get borderline upset on every little down wave?
A valid question: How terrified will the masses become when the market does eventually see a multi-week correction of 5%, or... more?
Bonus chart: Spain, monthly
Even one of the weaker markets - Spain, is offering a bull flag, with another attempt to challenge giant multi-year resistance of 12k.
|A fine January day|
Extra charts in AH (usually around 7pm EST) @ https://twitter.com/permabear_uk
Goodnight from London
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