Just a cooling wave

US equity indexes closed moderately lower, sp -18pts (0.7%) at 2711. The two leaders - Trans/R2K, settled -0.4% and u/c respectively. VIX settled +13.1% at 14.63. Near term outlook offers secondary target of sp'2671, before swinging strongly back upward into opex.


sp'daily5

VIX'daily3

Summary

US equities opened moderately lower, and saw cooling to 2704 by lunchtime. Late afternoon saw a new intra low of 2701, but then a closing hour mini ramp. Wed' could easily open 10pts or so higher, but the secondary target of 2671 looks very viable before this Friday's opex. I will add that yesterday's black-fail candle at gap resistance, was a great example of why I consider them particularly important.

Volatility was naturally higher, with the VIX settling higher for a second day. If sp'2670s, then VIX 16/17s. The key 20 threshold looks well out of range.
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