Thursday 4 October 2018

Bearish Thursday

US equity indexes closed broadly lower, sp -23pts (0.8%) at 2901. Nasdaq comp' -1.8% at 7879. The two leaders - Trans/R2K, settled -0.4% and -1.4% respectively. VIX settled +22.5% at 14.22. Near term outlook offers a bounce into the weekend, with soft target of 2919/25.




Wednesday saw yet another late afternoon rollover - from key price threshold of 2937. Some weakness was expected, but it was a little surprising to see the market bears manage to break under the 2900 threshold, and keep grinding equities lower into the afternoon.

Today saw the US 10yr >3.20%, and that was indeed excuse for the algo-bots to mark prices lower. 

Volatility naturally jumped, with the VIX seeing the upper 15s, the highest volatility since August 15th. We've a new downside gap in the 12/11s, and that is clearly going to be retraced back pretty soon.

Rare sunshine for the equity bears
Extra charts in AH (usually around 7pm EDT) @

Goodnight from London
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