Wednesday 7 February 2018

Wednesday swings

US equity indexes closed moderately mixed, sp -13pts (0.5%) at 2681 (range 2684/2727). The two leaders - Trans/R2K, settled +0.3% and +0.1% respectively. VIX settled -7.5% at 27.73. Near term outlook offers further chop, but leaning upward, with the Tuesday low of 2593 increasingly secure.




US equities opened moderately lower, but then swung significantly upward from 2684 to an intra high of 2727. There was a late day cooling wave, even breaking a new intraday low of 2681. The daily candle bodes for (at least) early Thursday weakness. Price action is pretty choppy, but distinctly less than the previous two days. Its really a case of the market in a stabilisation phase.

Volatility cooled for a seconday, with the VIX settling in the 27s. This is notably still an elevated level, and even today's close is way above the 2017 peak of the 17s.

Bonus chart: Japan, monthly

I realise many of you don't care (although you should), but the Nikkei is currently net lower for the month by -6.3% in the 21600s. So long as 21k holds... m/t bullish. I would acknowledge, that you could count 5 giant waves from the key low of Oct'2008. Those holding a broadly bullish outlook for global equities should be carefully monitoring the Japanese market.

Another day closer to the green shoots of spring

Extra charts in AH (usually around 7pm EST) @

Goodnight from London
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