Monday 11 June 2018

Starting positive

US equities began the week on a slightly positive note, sp +3pts (0.1%) at 2782. The two leaders - Trans/R2K, settled +1.0% and +0.1% respectively. VIX settled +1.4% at 12.35. Near term outlook offers Tuesday weakness as low as sp'2760, with a more broader target of 2718.




US equities began the week on a positive note, and after some fractional chop, clawed upward into the early afternoon to sp'2790 - the highest level since March 13th. The closing hour saw some moderate cooling to settle at 2782. The s/t cyclical setup for Tuesday is bearish, although we could certainly open higher on a Trump/Kim deal.

Volatility was itself very subdued, with the VIX settling fractionally higher in the mid 12s. A burst to the 15/16s is a valid threat, not least as the fed are set to raise rates.

Bonus chart: China, monthly

Chinese equities are still leaning on the weaker side, breaking a new low for the year of 3037. Clearly, if psy' 3K is lost, that'd lead to some mainstream concern, and spiral things somewhat lower.

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

Goodnight from London
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