Tuesday 20 August 2019

Tuesday cooling

US equity indexes closed moderately weak, sp -23pts (0.8%) at 2900. Nasdaq comp' -0.7%. The two leaders - Trans/R2K, both settled -0.7%.




US equities opened on a weak note, and after a late morning bounce to fill the opening gap, the afternoon saw renewed cooling.

Trump appeared in late afternoon...

... and not surprisingly, once again called for lower rates.

Volatility was itself a little choppy, but with equities leaning weak into the close, the VIX settled +3.7% at 17.50. S/t outlook favours downside to the sp'2860/50s, which should equate to VIX 20/21. An eventual break <2822 will offer a test of the June low of 2728, which might offer a VIX hyper spike >30.

The waning moon
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Goodnight from London
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