Pre earnings washout

US equity indexes closed moderately weak, sp -4pts at 2270 (intra low 2254). The two leaders - Trans/R2K, settled lower by -0.4% and -0.9% respectively. VIX settled +2.5% @ 11.54. Near term outlook threatens upside into the long weekend... so long as the financials post at least 'reasonable' earnings.


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Summary

Yesterday saw a rather powerful triple spike floor low from sp'2260. Normally, such a floor would hold... but this morning saw it broken, and that was a surprise.

With weak equities, the VIX battled upward... and partly filled the little gap zone of 12.50/80. Its notable that even with equities broadly lower, the VIX still can't even manage the low teens. The key 20 threshold looks well out of range for remainder of the month.


Friday, a day for the bulls?

I'm bullish for tomorrow, not least in terms of the financials reporting. The outlook for the year ahead should be the most bullish we've heard from the CEOs of BAC, JPM.. and others, since before the great collapse wave of 2008.

If instead the market can't rally significantly tomorrow... it would be a major problem for the mid term bullish outlook into the spring,

Goodnight from a snowy London

Trump inspired swings

US equity indexes closed moderately higher, sp +6pts @ 2275. The two leaders - Trans/R2K, settled higher by 1.0% and 0.2% respectively. VIX settled -2.0% @ 11.26. Near term outlook offers broad strength into the weekend.. as Dow 20k and Sp'2300s are due.


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Summary

There is no question, today's price action was largely a result of Trump's morning press conf'. The HFT algo-bots are hanging on every single world from Trump.

For those with a weak stomach... the coming years are going to be much like today, as any stock, sector, commodity, or even currency, will be vulnerable to any utterances from the soon to be president.

At least it won't be dull.

Goodnight from an entertained London

Underlying sunny strength

US equity indexes closed moderately higher, sp' u/c @ 2268. The two leaders - Trans/R2K, settled higher by 0.8% and 1.0% respectively. VIX settled -0.6 @ 11.49. Near term outlook offers further upside to the low sp'2300s - along with Dow 20k, before the 3 day holiday weekend.


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Summary

It was once again a case where the market opened a little weak, but there is simply no real downside power, as there just aren't many sellers.

Price action remains pretty quiet, but will likely pick up dramatically this Friday, when the financials start to report. Those are likely to 'inspire' the mainstream into something of a mild bullish hysteria. It should be rather entertaining to watch.

As for VIX... its naturally subdued... as even the 13s look out of range for the rest of this week. The key 20 threshold looks out of range until mid Feb'.. when perhaps we'll see a test of the rising monthly 10MA in the low 2200s.
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Here in the metropolis...

Another day closer to summer, and that has to be bullish, yes?

Goodnight from London