Wednesday 8 May 2019

Turbulent on trade

US equity indexes closed a little weak, sp -4pts (0.2%) at 2879. Nasdaq comp' -0.3%. The two leaders - Trans/R2K, settled -0.3% and -0.5% respectively. Near term outlook offers another swing lower, before possible trade news on Friday.




The day began with pre-market trade chatter from the Trump...

... that helped give futures a kick upward, with US equities opening in moderate chop mode, and that was how it remained for the day.

Volatility remained relative elevated, seeing a high of 21.71, but settling +0.4% at 19.40.

Thursday will inherently favour the equity bears, as does the s/t cyclical setup. There is support with the 50dma at 2858, and a legacy gap of 2848/34. Its entirely possible we see down wave to the latter by late Thurs/early Friday, but still hyper surging on 'positive trade news' into the Friday close. For the record, I do expect some kind of US/China trade agreement, not that it matters to the US/global economy. There are a great many grander issues than tariffs.

Into the unknown

Turbulent skies for a turbulent market
Extra charts in AH (usually around 7pm EDT) @

Goodnight from London
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