Monday 7 January 2019

You will resent its absence

US equity indexes closed broadly higher, sp +17pts (0.7%) at 2549. The two leaders - Trans/R2K, settled +0.8% and +1.7% respectively. VIX settled +0.1% at 21.40. Near term outlook offers further upside to natural target of the sp'2620/30s.




Equities began the week on a bullish note, with the spx climbing for the 6th day of 8.

Volatility saw an early high of 22.71, and then resumed melt mode, settling fractionally higher in the mid 21s. The black candle leans s/t bearish volatility, and by default... s/t bullish equities.

You will resent its absence

"Do not my friends, become addicted to water. It will take hold of you, and you will resent its absence" - Immortan Joe

The same notion can be applied to equity upside for the bulls, who are getting rather confident again, having clawed upward from the Dec'26th low of 2346. The mid/long term bulls really need a monthly close back in the mid 2700s. That sure doesn't look likely this month.. or next.
Extra charts in AH (usually around 7pm EST) @

Goodnight from London
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