Thursday 15 February 2018

A fifth day of gains

US equity indexes closed broadly higher, sp +32pts (1.2%) at 2731. The two leaders - Trans/R2K, settled higher by 0.7% and 1.0% respectively. VIX settled -0.7% at 19.13. Near term outlook offers chop into the opex/3 day weekend. A test near/at the recent sp'2532 low remains a high threat into end month.




US equities opened moderately higher, saw an early high of 2717, and then cooled back to around u/c. Yet again, the buyers appeared, pushing strongly upward into the afternoon. Today's high of 2731.51 is notably 198.82pts (7.8%) above last Friday's low.

Volatility saw a mixed day, seeing a high of 20.66, but settling lower for a fifth consecutive day in the low 19s. Considering a 3 day holiday weekend is ahead, the VIX will likely see further cooling on Friday.

Bonus chart: Germany, monthly

With 9 trading days left of February, the DAX is currently -6.4% at 12346, notably still under the key 10MA. The German market is central to the EU, and how it settles the month should be seen as very important. Cyclically, its looking ugly, as a bearish MACD cross is due.

Sunny skies for the equity bulls
Extra charts in AH (usually around 7pm EST) @

Goodnight from London

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