Monday 12 November 2018

Bearish Monday

US equity indexes closed very significantly lower, sp -54pts (2.0%) at 2726. The two leaders - Trans/R2K, settled -1.4% and -2.0% respectively. VIX settled +17.8% at 20.45. Near term outlook offers further sig' downside to the sp'2680s, before next opportunity for a bounce.




The week began on a very bearish note, with the spx opening moderately weak, and unraveling into the afternoon. The closing hour broke a new intraday low of 2722, and offers further significant weakness ahead of opex.

Volatility naturally picked up, with the VIX settling back above the key 20 threshold. Next target is the minor gap in the 22/23s.

Bonus chart: Germany, monthly

A Monday decline of -1.8%, with November currently -1.1% at 11325. Deutsche Bank in the $9s is very reflective of underlying EU financial 'troubles'.

Final note...

I watched Ant Man and the Wasp last evening. A nice fun little movie. Stan Lee had a cameo of course... but today saw news of his death. From here onward, a great many of the super hero movies will be seen a little differently.

We can expect another cameo in the next Avengers movie, maybe even a few other things. In any case... a legendary creator of characters, whom many are thankful for.

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

Goodnight from London
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ps... Excelsior!