US equity indexes closed a little mixed, sp -1pt at 2884. Nasdaq comp' -0.7% at 7735. The two leaders - Trans/R2K, settled u/c and -0.1% respectively. VIX settled +5.9% at 15.69. Near term outlook offers a bounce.
It was a bearish start to the week, not helped with weak EU/Asian markets. The sp' broke below the Friday low, with the VIX correspondingly breaking above its Friday high. There was yet another latter day recovery from a low of 2862 to settle at 2884. The daily candle is a hollow red reversal, and offers provisional sign of a s/t floor.
Volatility spiked, with the VIX seeing a new multi-month high of 18.38. With equities recovering, the VIX cooled, settling +5.9% at 15.69. Note the black-fail spiky candle, which provisionally marks a s/t peak.
Monday was the first actual trading day of the month for China, and it wasn't a great start, with the Shanghai comp' settling -3.7% to 2716. So long as the Sept' low of 2644 holds, no concerns. However, if that does fail, then it would merit alarm bells, especially if the DAX also unravels...
The DAX is a key market, and if the l/t trend from 2009 is decisively broken and settled under... that would merit alarm bells. Technically, any bearish monthly close would offer 8k... which is a long way down.
Extra charts in AH (usually around 7pm EDT) @
Goodnight from London
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