Monday 10 December 2018

May tainted Monday

US equity indexes closed moderately mixed, sp +4pts (0.2%) at 2637. The two leaders - Trans/R2K, settled -0.8% and -0.3% respectively. VIX settled -2.5% at 22.64. Near term outlook offers a challenge of the Feb' low of sp'2532.




US equities opened in minor mode, which was a somewhat impressive recovery from overnight lows. However, with May announcing that the Tuesday BREXIT vote would be delayed, the market spiraled lower, taking out the Oct' low of 2603.

May delaying the vote

The 12pm hour saw a distinct ramp, partly helped via an overt cheerleader pump on CNBC, It is the case that the cheerleaders are desperately trying to retain hope. Santolli (seen below) is trying to hold onto the notion that price action is similar to Feb>April.

Hanging onto hope
Meanwhile, volatility saw a high of 25.94, and with equities recovering, the VIX settled a little lower in the mid 22s.

Bonus chart: Germany, monthly

The DAX is lower for a fifth consecutive month, currently -5.6% at 10622. Psy'10k will offer some support, but more broadly, a run to 8k appears well underway. Bodes badly for rest of the European markets.

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

Goodnight from London
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