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.


sp'daily5



VIX'daily3



Summary

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.
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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?

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

Goodnight from London
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