Tuesday 31 March 2020

A fiercely bearish March

US equity indexes closed significantly lower, sp -42pts (1.6%) at 2584. Nasdaq comp' -0.9%. Dow -1.8%. The Transports settled -0.7%. Near term outlook offers cooling to at least the mid sp'2300s.




US equities opened a little weak to 2592, but swung upward to break a fractional new cycle high of 2641. Meanwhile...

So... if that is eventually agreed, the Fed will no doubt be buying (if indirectly) another $2trn of bonds. If you think that is a valid solution to the current economic depression, I got a bridge that spans the Atlantic ocean I can sell you.

The afternoon saw renewed weakness, with the market ending the month/Q1 on a pretty weak note. Volatility was in cooling mode, with the VIX settling -6.2% to 53.54.

A fiercely bearish March

Despite a seven day swing from 2191 to 2641, it was unquestionably a fiercely bearish March, as February's bearish engulfing candle played out.


For the month, the SPX saw a net decline of -369pts (12.5%) to 2584, having printed a low of 2191.

I would merely ask... what 'drama' will April/Q2 offer? 

The sun sets on March/Q1

Full moon is April 7th
Extra charts in AH (usually around 5pm EST) @ https://twitter.com/permabear_uk

Goodnight from London
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