Wednesday 13 June 2018

Powell on Parade

US equity indexes closed on a somewhat weak note, sp -11pts (0.4%) at 2775. The two leaders - Trans/R2K, settled -0.8% and -0.3% respectively. VIX settled +4.9% to 12.94. Near term outlook offers sig' weakness, a quad-opex settlement around sp'2755 would be particularly natural.




US equities opened in chop mode, and broadly stayed that way into the 2pm press release from Print Central. As expected, the fed raised rates 25bps to a new target range of 1.75-2.00%. Most notable, is that fed consensus is for FOUR hikes this year. This is something of a surprise, although at the start of this year, yours truly did call for four hikes.

Fed Chair Powell

Volatility remained very subdued, settling in the upper 12s. Near term outlook offers the sp'2750s, with 'minimum technical necessity' of sp'2718, and that would arguably equate to 15/16s.

If you think higher rates are a negative, I strongly recommend you watch the following on a loop for at least one hour.


Coming in 2019...

... and Dumbo is clearly bullish Disney.  

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

Goodnight from London
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