Wednesday 21 March 2018

The bullish rate hike

US equity indexes closed moderately mixed, sp -5pts at 2711. The two leaders - Trans/R2K, settled -0.3% and +0.5% respectively. VIX settled -1.9% at 17.86. Near term outlook offers upside to the gap of 2741/52, with a March settlement >2800. More broadly, the 2950/3047 is on the menu.




US equities opened fractionally choppy, and then leaned upward into the early afternoon. As expected, the fed raised rates by 25bps to a new target range of 1.50-1.75%. The sp' initially jumped to 2739, but then saw a significant swing lower to 2709. This sort of swing is to be expected for such a fed day, as the algo-bots try to trigger the short and long-side trading stops.

Powell press conf' number one, with many to follow in the years ahead.

The VIX opened weak, and briefly turned positive in the late afternoon. Despite equities closing on the weaker side, with the uncertainly of the fed out of the way, the VIX settled lower for a second day. Single digit VIX looks on the menu this spring.

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

Goodnight from London

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