Tuesday 24 July 2018

Very mixed Tuesday

US equity indexes closed very mixed, sp +13pts (0.5%) at 2820. The two leaders - Trans/R2K, settled -1.5% and -1.0% respectively. VIX settled -1.7% at 12.41. Near term outlook still threatens a 'technically necessary' mini washout to sp'2768, but that will be a challenge, as earnings are coming in broadly superb.




It was very mixed Tuesday in equity land. The sp'500 saw a new multi-month high of 2829.99, with  the Nasdaq breaking a new historic high. Yet, there was some distinct cooling into the mid afternoon. The Trans and R2K both settled sig' lower, with tech effectively flat. Further, the settling sp'500 candle was of the black-fail doji type, which leans to the bears across the next few days.

Volatility continues to churn within the 13/11s. A sporadic spike to the mid 14s/15s will be a threat for the remainder of the week, even as earnings continue to come in broadly superb.

Bonus chart: China, monthly

Yes, I'm highlighting China again! With news of further fiscal stimulus, the Shanghai comp' is +2.0% at 2905. The current candle is very bullish, with a clear spike floor from 2691. It does bode rather well for other world markets into September.

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

Goodnight from London
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