Tuesday 18 December 2018

Swings ahead of Powell

US equity indexes closed moderately mixed, sp +0.2pts at 2546. The two leaders - Trans/R2K, settled +0.4% and -0.1% respectively. Near term outlook offers a Powell/Fed induced spike, but it should be short-lived, as the bigger weekly/monthly cycles are offering the sp'2300/200s.




US equities opened on a moderately positive note, but the gains were shaky from the start, and despite a break of the s/t declining trend in the 12pm hour, the spx turned moderately lower in the late afternoon. The closing hour was pretty wild, settling effectively flat at 2546, making for a black-fail candle, which leans s/t bearish.

Volatility saw some swings, from a low of 23.64 to the 26.14, settling in the mid 25s.

bonus chart: Germany, monthly

The DAX is currently -4.6% at 10740. Support at psy'10k, and then around 8k. Considering the break of l/t trend, an eventual back test of the giant 200/2007 double top looks probable. If correct, very bearish implications for other European markets. Its impossible to not see the US being adversely affected to some significant extent in 2019.

Extra charts in AH (usually around 7pm EST) @ https://twitter.com/permabear_uk

Goodnight from London
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