Strength into the long weekend

US equity indexes closed moderately higher, sp +18pts at 2786. The two leaders - Trans/R2K, settled higher by 0.8% and 0.3% respectively. VIX settled +5.0% at 10.16. Near term outlook threatens a little weakness, but more broadly, the sp'2950/3047 zone is a valid target, as early as late spring.


sp'daily5

VIX'daily3

Summary

US equities opened a little higher, and once again, built gains into the afternoon, and breaking new historic highs in the closing hour. All six of the main US indexes broke new historic highs today, which is indeed an aspect of the 'new normal'.

VIX settled higher for a second day, and notably the 6th day of 7, but whether its VIX 8s, 9, 10s, or even the 11s, its all to be seen as 'minor noise' at such levels. Any significant/sustained VIX >20 looks out of range until the market has at least climbed to the sp'2950/3047 in late spring/early summer.

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Extra charts in AH (usually around 7pm EST) @ https://twitter.com/permabear_uk

Goodnight from London
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*the weekend post will appear Sat'12pm EST, and will detail the US equity indexes
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Mainstream 3047 chatter

US equity indexes closed broadly higher, sp +19pts at 2767. The two leaders - Trans/R2K, settled very significantly higher by 2.3% and 1.7% respectively. VIX settled +0.6% at 9.88. Near term outlook offers a little weakness, but nothing below the 2730s. More broadly, first big target zone is 2950/3047, as even the mainstream are starting to recognise.


sp'daily5

VIX'daily3

Summary

US equities opened moderately higher, and clawed upward into the afternoon. All six of the main indexes I regularly highlight broke new historic highs.VIX was naturally subdued, and stuck within the 9s.

There is threat of a moderate wave lower, but that is within a market that has extremely powerful underlying upward pressure. There are an ever increasing number of unfilled gaps, and even last Friday's 2731/23 gap now looks almost out of range.
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Mainstream 3047 chatter

My day began with the usual browse of what the mainstream are saying, and I was not disappointed.

Must-watch Video: https://www.cnbc.com/video/2018/01/11/relentless-rally-mixed-with-low-volatility-is-a-recipe-for-problems-drw-trading-strategist.html

Lou Brien is the first (that I'm aware of) to make it on the mainstream financial networks who has dared to mention the next giant fibonacci extrapolation of sp'3047. It was very pleasing to see indeed!

For more chatter on that issue, see my 'outlook for 2018': http://permabeardoomster.blogspot.co.uk/2018/01/weekend-update-outlook-for-2018.html

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Extra charts in AH (usually around 7pm EST) @ https://twitter.com/permabear_uk

Goodnight from London
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The twitchy mainstream

US equity indexes closed fractionally mixed, sp -3pts at 2748. The two leaders - Trans/R2K, settled +0.1% and u/c respectively. VIX settled -2.8% at 9.82. Near term outlook offers a little weak chop to around sp'2730. More broadly, things only get interesting within the sp'2950/3047 zone.


sp'daily5

VIX'daily3

Summary

US equities opened moderately weak, with a rather typical recovery into the afternoon. It was notable that the Transports did break a new historic high, a reminder of underlying m/t price momentum. Despite weak equities, the VIX could only push to the upper 10s, and even settled fractionally lower, reflective of underlying capital market confidence. No one seriously expects a sustained/significant equity down wave any time soon.


Twitchy mainstream

Reading around this morning, it was rather bizarre to see how twitchy some were. Did everyone already forget about 2017? Are we really going to have yet another year where the market broadly climbs, but most get borderline upset on every little down wave?

A valid question: How terrified will the masses become when the market does eventually see a multi-week correction of 5%, or... more?
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Bonus chart: Spain, monthly

Even one of the weaker markets - Spain, is offering a bull flag, with another attempt to challenge giant multi-year resistance of 12k.
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A fine January day

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Extra charts in AH (usually around 7pm EST) @ https://twitter.com/permabear_uk

Goodnight from London
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