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.

sp'daily5



VIX'daily3



Summary

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) @ https://twitter.com/permabear_uk

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