Friday 23 March 2018

Ending the week badly

US equity indexes ended the week very significantly lower, sp -55pts (2.1%) at 2588 (intra low 2585). The two leaders - Trans/R2K, settled -1.8% and -2.1% respectively. VIX settled +6.5% at 24.87. Near term outlook offers a turnaround early next week.




US equities opened on a somewhat positive note, which was rather impressive after overnight borderline significant declines. The gains didn't hold long though, as every minor rally was still being sold into. Just like yesterday, there was distinct late afternoon weakness, with another ugly closing hour. The sp'500 came within a fraction of a point of tagging the key 200dma.

Volatility was higher, but only moderately, settling in the 24s. Relative to the equity weakness, the VIX is NOT indicative of any underlying capital market panic/upset. The situation IS different to late Jan/early Feb'.

Asian weakness: Japan, monthly

With five trading days left of the month, the Nikkei is -6.5% at 20617. The Friday close <21k is very bearish. If March does settle <21k, it'd merit provisional alarm bells.

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

Goodnight from London
*the weekend post will appear Sat'12pm EST, and will detail the US equity indexes

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