Thursday 23 July 2020

There will be no V

US equity indexes mostly closed significantly lower, sp -40pts (1.2%) at 3235. Nasdaq comp' -2.3%. Dow -1.3%. The Transports settled -0.3%.




US equities opened in minor chop mode, if with a fractional new multi-month high of sp'3279.99.


The Santelli of CNBC

The latest weekly jobs data wasn't pretty, 1.416M vs 1.307 (revised) prior week. The run of improvement has concluded, as the economic recovery has stalled for obvious reasons. The notion of a V-shaped recovery was always nonsense. Now its a case of how rough the rest of the summer will be, and whether society itself devolves into even deeper levels of mass hysteria this autumn.

The afternoon saw a very significant swing lower - with tech leading the way, the SPX printing 3222. and settling at 3235.

Volatility swung from a low of 23.60 to settle +7.2% to 26.08. The daily SPX candle is of the bearish engulfing type, with the daily VIX candle of the bullish engulfing type. Those are not to be dismissed lightly.

Appropriately moody skies for a Thursday
Extra charts in AH (usually around 5pm EST) @

Goodnight from London
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