VIX resumes cooling

With equities closing significantly higher, the VIX resumed cooling mode, settling -13.5% @ 14.45. Near term outlook is for continued equity upside, which will likely equate to VIX 13/12s. The key 20 threshold looks out of range at least for another 5-6 trading days.


VIX'60min

VIX'daily3

Summary

VIX is naturally being ground lower as the equity market resumes 'normal service'.

Right now, it is looking like we've seen the VIX high of the year (53s). At best... volatility bulls might see VIX briefly trade in the 20-25 zone once or twice before year end.

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more later... on the indexes

Closing Brief

US equities closed significantly higher, sp +33pts @ 2052. The two leaders - Trans/R2K, settled higher by 1.5% and 0.8% respectively. Near term outlook is for continued upside into the next FOMC (Oct 28th)... and if the market likes what the Fed has to say... a straight run to the sp'2100s.


sp'60min

Summary

Unquestionably.. a day for the equity bulls, as the market negated yesterday afternoon's nonsense.

Far from the rally running out of steam... price momentum is INCREASINGLY favour the bulls with each day.

For now.. this is absolutely no market to be short.

*earnings due from AMZN.
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4.24pm.. Earnings from AMZN, GOOGL, MSFT have all greatly pleased the market.

The sp'2060s look due tomorrow... with a viable weekly close within the sp'2065/75 zone.. and that would kill any remaining hope of a broader bearish scenario into end year.

Sp +9pts in AH.... equiv' to 2061... breaking the 200dma.

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more later... on the VIX

3pm update - significant net daily gains

The sp'500 has seen a moderate down wave from 2055 to 2041, but still looks set for a daily close in the 2050s. VIX remains very subdued, -9% in the 15s. USD is holding very sig' gains of 1.3% in the DXY 96.30s.


sp'60min

sp'daily5

Summary

*earnings due at the close... AMZN and GOOGL
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Without question, a day when the equity bears really felt some pain.. and with the Nasdaq already breaching the 200dma.. there is little reason to expect anything different until at least after next Wednesday's FOMC.
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back at the close