Just another new historic high

US equity indexes closed moderately higher, sp +10pts @ 2187. The two leaders - Trans/R2K, settled both higher by around 0.5%. VIX settled -2.7% @ 13.35. Near term outlook threatens a retrace to the 50dma, but broadly the market remains strong, which is especially impressive considering the USD.


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Summary

Well, so much for the retrace happening this week. Instead, equities have just continued to claw upward. Considering its opex tomorrow, at best, a weekly close around sp'2170, but that'd still make for a minor net weekly gain.

VIX remains naturally subdued.. even seeing the 12s this morning. The key 20 threshold looks a stretch.. even in mid Dec' - when the fed will raise rates.
 

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R2K, monthly

Today saw the TENTH consecutive net daily gain for the R2K, is that a new record? I will merely add, even I am somewhat amazed to see R2K in the 1300s, as it was trading at 1156 on Nov'3rd. Mainstream talk will now move to talk of 1500s in 2017. A few of the more 'wild ones', will start talking about 'R2K @ 2K'.

Goodnight from London

Awaiting the Yellen

US equity indexes closed moderately mixed, sp -3pts @ 2176. The two leaders - Trans/R2K, settled -0.7% and u/c respectively. VIX settled +2.6% @ 13.72. Near term outlook still threatens cooling to the mid sp'2140s. Broadly though, underlying price action remains strong.


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Summary

Another not particularly exciting day in market land. Indeed, last week's wild price moves, probably won't be seen again for many months... maybe a few years.

VIX remains subdued in the low teens. At best.. if sp'2140s, the 17s look viable. The key 20 threshold looks out of range until at least mid December, when the fed will raise rates.
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Copper, monthly

Price action in copper remains interesting, having cooled from $2.73 to 2.47. The break above descending trend/resistance that stretches back to 2011 is extremely significant. Another push towards the $3 threshold looks a given.

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More fedspeak

Thursday morning will see the CEO of print central, aka Yellen, give testimony to the US house. That would be an ideal excuse for the market to sell significantly lower... if briefly.

Perhaps we'll hear some questions from some of the representatives about fiscal stimulus - via Trump infrastructure plans, rather than via monetary policy. In any case... it'll be something to watch tomorrow. Any weakness in Yellen - which is always a threat, would be the excuse for a sig' wave lower, ahead of the Friday opex.

Goodnight from London

The old leader powering upward

US equity indexes closed broadly higher, sp +16pts @ 2180. The two leaders - Trans/R2K, settled higher by 0.5% and 0.3% respectively. VIX settled -7.7% @ 13.37. Near term outlook still offers threat of a cooling wave to the mid sp'2140s, before resuming higher after opex.


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VIX'daily3

Summary

It was a rather tedious day in equity land, with much of the day comprised of minor chop. Yet, there was some distinct strength in the late afternoon, with the sp' coming within 2pts of last Thursday's high.

VIX was naturally ground lower, and is now close to levels from last Thursday morning.

Right now, best guess is that Mr Market will want to washout some of the weaker bull hands before opex/weekend. At best.. the mid sp'2140s look viable, before whipsawing back upward. Considering the new historic highs in the Dow/R2K, a Nov' close in the 2200s is clearly within range.

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Transports, monthly2

The 'old leader' - Transports, is racing to catch up, with a new high of 8844, the best level since May 2015. The Nov'2014 historic high of 9310 still looks a few months away.

Equity bears can't get confident unless a break back under the 8k threshold, which frankly now looks like a damn solid floor, that will likely hold for much.. if not all of 2017. Anyone doubt 10K tranny within 6-12 months?
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Meanwhile... on clown finance TV...

... and on that image...

Goodnight from London