Wednesday 10 October 2018

Mainstream hysteria

US equity indexes closed powerfully lower, sp -94pts (3.3%) at 2785. Nasdaq comp' settled -4.1% at 7422. The two leaders - Trans/R2K, settled -4.0% and -2.8% respectively. VIX settled +43.9% at 22.96. Near term outlook offers s/t capitulation around the 200dma in the 2760s.




It was an ugly day in equity land, with the sp' opening moderately lower, and spiralling lower, all the way into the closing hour. Indeed, the closing hour was especially bearish, with the sp'2800 stops being washed out. Volatility naturally soared, with the VIX seeing the 22s, the highest level since early April.

Mainstream hysteria

With the market sig' lower in the afternoon, CNBC brought on the infamous Cramer. He sure has been on a mini crusade lately, slating Fed chair Powell for raising rates. I can kinda understand the concerns, but I see them as based on nothing of substance. The econ-data and corp' earnings are broadly fine. There is little reason to expect any kind of economic downturn into year end/early 2019.

*As I type (5.30pm EST), US equity futures, sp -18pts... 2867, and indeed, the 200dma will likely be tested on Thursday. Tomorrow will be a key day.

**Micron Tech' (MU) was notably resilient today, even turning sig' higher in the early afternoon. So long as the Sept' low of $40.68 holds... no concerns, as the buy back continues.


Dusk... at 1.05pm EST
Extra charts in AH (usually around 7pm EDT) @

Goodnight from London
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