US equity indexes mostly closed broadly lower, SPX -29pts (0.8%) at 3672. Nasdaq comp’ -1.9%. Dow -0.4%. The Transports settled +0.2%.
sp’daily5
nasdaq comp’
transports
Summary
SPX: opening a little choppy, but breaking a new hist’ high of 3712, and then broadly cooling into the late afternoon to 3660, and settling -29pts (0.8%) to 3672. Today’s close is under yesterday’s low, and that makes for a bearish engulfing candle, which is distinctly s/t bearish.
Momentum is set to turn negative at the Thursday open. Soft gap support of 3645/21, and then 3594/77. I would note the 50dma at 3506.
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NAS: breaking a new hist’ high of 12607, but swinging very significantly lower, to settle -243pts (1.9%) to 12338. Today’s bearish engulfing candle leans distinctly s/t bearish. I would note first major support of the 50dma in the 11700s.
Trans: the sixth daily gain of seven, breaking a new hist’ high of 12917, and settling +25pts (0.2%) to 12802. Today’s candle is black, and leans s/t bearish.
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VIX’daily3
VIX saw an early (cash market) low of 20.20. With equities spiraling lower into the late afternoon, VIX picked up, settling +7.7% to 22.27. Today’s settlement is above yesterday’s high of 22.25, and thus makes for a bullish engulfing candle, which leans distinctly s/t bullish, and is an appropriate mirror to the bearish engulfing candle seen in the SPX.
Daily momentum continues to build. Typically, on a spike, we can expect no more than 2pts above the upper bollinger, currently in the 24s.
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Looking ahead by 6pm EST