Monday 20 May 2019

Starting weak

US equity indexes closed on a weak note, sp -19pts (0.7%) at 2840. Nasdaq comp' -1.5%. The two leaders - Trans/R2K, settled -0.3% and -0.7% respectively.




US equities began the week on a weak note with early weakness to 2832, a rebound into the early afternoon, a closing hour low of 2831, and settling at 2840.

Volatility saw an early high of 17.63, with the VIX settling +2.2% at 16.31. Indeed, VIX is reflecting very little mainstream concern, even though some parts of the market (namely tech) are still getting whacked. The s/t cyclical setup favours the equity bulls, although price structure of a bear flag (in a number of indexes) has already started to play out.


Bostic of the Atlanta fed has few concerns. It is increasingly 'curious' to see the mainstream expecting a rate cut. Right now, that looks no earlier than the FOMC of Oct'30th... just after the QT program has fully concluded.

Extra charts in AH (usually around 7pm EDT) @

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