Tuesday 22 May 2018

Late afternoon cooling

US equity indexes closed on a rather weak note, sp -8pts (0.3%) at 2724. The two leaders - Trans/R2K, settled -1.1% and -0.7% respectively. Near term outlook offers a little weakness, but nothing sustained under sp'2710. More broadly, the 2800s still look due in June.




US equities opened a little higher, and battled to 2742. From there... a great deal of micro chop, and leaning distinctly weak in the late afternoon. Yesterday's opening gap of 2725/12 looks set to be fully filled, before the market resumes upward. The R2K notably broke a new historic high for a FIFTH consecutive day, which bodes well for the other indexes into early summer. 

Volatility was naturally subdued, and despite late afternoon equity cooling, the VIX only settled a little higher in the low 13s.

Bonus chart: Germany, monthly

The DAX is currently net higher for May by a very significant 4.4% at 13169. New historic highs look due into early summer. Price structure is a clear five waves from the March 2009 low.

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

Goodnight from London
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