Monday 6 August 2018

A new multi-month high

US equity indexes closed moderately higher, sp +10pts (0.4%) at 2850. The two leaders - Trans/R2K, both settled +0.6%. Near term outlook offers another s/t cooling wave, at least to re-test the 2800/2790s. Min' technical retrace remains 2768.




US equities opened in minor chop mode, but with no downside pressure, resumed into the same algo-bot melt mode that we saw last Thurs/Friday. The sp' broke a new multi-month high of 2853.29, just fractionally shy of fully filling the last upside gap (2822/2853.53).

Volatility was naturally subdued, with the VIX settling in the low 11s. A sporadic spike to the 15/16s is entirely viable later this week.

Bonus chart: China, monthly

Monday saw a net daily decline of -1.3% to 2705... approaching the July low of 2691. This is getting ugly again, as the US/China trade war is already seeing a clear victor... at least in equity prices.

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

Goodnight from London
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