Friday 21 December 2018

Spiraling into the weekend

US equity indexes closed powerfully lower, sp -50pts (2.1%) at 2416. Nasdaq comp' -3.0%.  The two leaders - Trans/R2K, settled -1.7% and -2.5% respectively. Regardless of any sporadic bounces, the sp'2300/250 zone is on track, and will have far grander implications for 2019.




US equities opened in chop mode, leaning on the upward side. Williams of the Fed was wheeled out to CNBC in the 10am hour, spewed some fedspeak, and the market jumped to sp'2504, only to then fully reverse into midday.

Wheeled out from Print Central to pump the market
Indeed, traders should be well aware that the lower we go, the more inclined the fed will be to issue threats of suspending QT... or even cutting rates. Such threats will lead to powerful bounces, but they won't last long, as this morning showed.

The market spiraled in the 12pm hour, but things turned really ugly with Navarro comments in late afternoon, that saw the spx break a new low for the year of 2408.

Navarro.. the bearish gift, that keeps on giving the whole year

Volatility swung from the 25s to the 31s, and settling +6.1% at 30.11. Considering equity price action, the VIX is still rather low.

Winter solstice sunshine
A shrouded... almost full moon

A half century ago...

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

Goodnight from London
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