Friday 24 January 2020

Bearish end to a bullish week

US equity indexes closed broadly lower, sp -30pts (0.9%) at 3295. Nasdaq comp' -0.9%. Dow -0.6%. The Transports settled -0.7%.




US equities opened on a positive note, but the gains were shaky from the very start, with a notable opening black 30/60min equity candle. With further adverse coronavirus headlines, the market turned negative, and price steadily fell into the mid afternoon to 3281. There was a bounce from the typical turn time of 2.30pm, but that still made for a broadly red close.

Volatility opened weak, but swung strongly higher, with the VIX settling +12.2% at 14.56. S/t outlook offers the sp'3260/50s, before a more realistic bounce.

Your views...

71% of you have no fear, or are only mildly concerned. For the record, yours truly is only 'fractionally concerned' about the Coronavirus. Across the years, we've seen mainstream hysteria about SARS, Ebola, and a few other such things... none of which has amounted to anything of significance.

Yes... at some point, we're going to have a global pandemic that kills millions, and yes, due to global travel, it will spread faster than anything the world has ever seen. In any case, a number of Chinese cities (16 as of Jan'24th) are partly locked down, as the 'year of the rat' is set to begin on Saturday.

Extra charts in AH (usually around 5pm EST) @

Goodnight from London
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