Monday 2 July 2018

Daily reversal

US equity indexes closed on a broadly positive note, sp +8pts (0.3%) at 2726. The two leaders - Trans/R2K, settled +1.0% and +0.7% respectively. Near term outlook offers upside across holiday week. Things will turn very bullish >sp'2754.




US equities opened moderately lower, with an early low of 2698 - back to last Monday's low. The opening 30/60min candles for equities and VIX offered clear reversals. The rest of the morning was choppy, but each micro down wave was negated. The afternoon saw the sp' turn moderately positive.

Volatility saw an opening high of 18.08, but then cooled, with the VIX settling in the mid 15s. Near term outlook offers equity upside for the half-day Tuesday session.

Bonus chart: China, monthly

It was a very bearish start to July/Q3/H2, with the Shanghai comp' settling the day -2.5% at 2775. Its technical 'open air' to the Feb'2016 low of 2638. Not pretty.

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

Goodnight from London
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