Wednesday 16 May 2018

R2K new historic high

US equity indexes closed broadly higher, sp +11pts (0.4%) at 2722. The two leaders - Trans/R2K, settled +0.8% and +1.0% respectively. VIX settled -8.3% at 13.42. Near term outlook offers another sig' wave lower, to the sp'2670s, before swinging back upward for opex.




US equities opened a little higher, and saw choppy upside to yesterday's gap of 2718/30. From an afternoon high of 2727, there was some distinct late afternoon cooling to 2717, but settling at 2722.

Volatility was naturally in cooling mode, with the VIX settling in the mid 13s. If we do see another sig' wave lower to the sp'2670s, then VIX 16/17s... if very briefly.

Most notable today was the R2K, which broke a new historic high of 1620.

R2K weekly

As highlighted this past weekend, the R2K is especially strong, currently higher for a THIRD consecutive month. Note price structure of a bullish pennant/triangle, which is now fully confirmed.  The strength in the R2K bodes well for the rest of the market this summer.

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

Goodnight from London
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