Tuesday 17 April 2018

Tuesday strength

US equity indexes closed broadly higher, sp +28pts (1.1%) at 2706. The two leaders - Trans/R2K, settled -0.2% and +1.1% respectively. VIX settled -7.9% at 15.25. Near term outlook offers a cooling wave, but likely no lower than the sp'2650/40s.




US equities opened broadly higher, helped by superb earnings from GS and UNH, and built significant gains into the late afternoon. There was a touch of cooling in the closing hour from a high of 2713, and we are due a cooling wave, that might see a key higher low in the 2650/40s on Thursday.

With further equity strength, volatility melted lower for a sixth consecutive day, settling in the low 15s.

Bonus chart: China, monthly

A Tuesday decline of -1.4%, now makes for a net April fall of -3.0% at 3066. Since Xi became leader for the next thousand years, the Shanghai comp' is not exactly performing so great. How long until the Chinese retail investors start getting twitchy?

Extra charts in AH (usually around 7pm EST) @ https://twitter.com/permabear_uk

Goodnight from London

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