Friday, 4 January 2019

The wild swings continue

US equity indexes closed powerfully higher, sp +84pts (3.4%) at 2531. Nasdaq comp' +4.3%. The two leaders - Trans/R2K, settled +3.9% and +3.7% respectively. Near term outlook offers further upside to the sp'2620/30s, before another rollover, with prime target of the 2250/40s.




US equities opened significantly higher, helped by unquestionably good jobs data. The Fed's Mester further helped inspire mainstream sentiment, when she overtly threatened to suspend the QT program if the US economy weakens.

The market battled upward, and accelerated on remarks from Powell...

The afternoon saw a break back above the old Feb' low/floor of 2532. That has opened the door to a few more days of upside, with the low 2600s viable next week, before the next big rollover.

Volatility was naturally dented right from the open, with the VIX settling in the mid 21s. Its notable that yesterday's black-fail candle was a subtle hint that Friday would indeed favour the equity bulls. 

The wild swings continue

Whilst Thursday saw the mainstream in semi-terror mode, Friday has seen the cheerleaders flip back to an 'everything is fine again' mindset. A rare few have noted (not least Josh Brown), that since early October we're simply seeing a series of lower highs and lower lows. Today's powerful gains don't change that pattern. There is zero reason not to treat bounces as such, although obviously... such bounces are scary strong, with the ongoing swings enough to make anyone dizzy.

Looking upward into next week

The first London sunset of 2019
Extra charts in AH (usually around 7pm EST) @

Goodnight from London
If you value my work, subscribe to my intraday service. 
For details and the latest offers, see: