Monday 28 January 2019

Renewed downside

US equity indexes closed broadly weak, sp -20pts (0.8%) at 2643. Nasdaq comp' -1.1%. The two leaders - Trans/R2K, settled -0.2% and -0.6% respectively. Near term outlook offers a break under the 50dma, which would see prices spiral lower.




US equities opened broadly weak, with the mainstream spooked by earnings from CAT and lowered revenue guidance from NVDA. We have a clear double top of sp'2675/72, whilst the Dow broke a marginal new cycle high last Friday. Today counts as day'1 down.

Volatility naturally jumped, with the VIX re-taking the key 20 threshold, but settling +8.3% at 18.87. S/t outlook offers far lower equity levels. Many individual stocks are suggestive of a fast run to the sp'2474/47 gap zone, and that might equate to VIX (briefly) around 30.

Another plane making an escape from BREXIT chaos.

Sunshine for the bears... before the snow :)
Extra charts in AH (usually around 7pm EST) @

Goodnight from London
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