US equity indexes mostly closed a little weak, SPX -7pts (0.2%) at 3691. Nasdaq comp’ +0.4%. Dow -0.5%. The Transports settled -0.1%.
sp’daily5
nasdaq comp’
transports
Summary
SPX: opening a little weak, and seeing considerably chop (if leaning weak) into the late afternoon. The closing hour saw an intraday low of 3678, with a mini recovery to settle -7pts (0.2%) to 3691. Upper bollinger is offering the low 3700s. I would note the lower bollinger at 3513, and that will offer strong support around 3600 by mid month.
NAS: a third day higher, breaking a new hist’ high of 12536, and settling +55pts (0.4%) to 12519. Upper bollinger will be offering the 12600s within a few days.
Trans: breaking a new hist’ high of 12792, but settling -16pts (0.1%) to 12725. Upper bollinger is offering the 12900/13000 zone in the near term.
*I would just add, the Dow did break a new hist’ high at the open of 30233.
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VIX’daily3
Volatility remained broadly subdued, an opening high of 22.03, but cooling back, the VIX settling +2.4% to 21.30. Today’s black candle is from under the key 22s, which leans s/t bearish, and by default… is s/t bullish for equities.
Daily momentum actually settled fractionally positive today, but it counts for little right now. Note the upper bollinger at 25.63. Its possible we might see a single piece of ‘adverse news’ result in an equity ‘one day special’, but at most… VIX 25s, 2pts higher to the 27s… on a stretch.
Whilst the election result is yet to be finalised, and possibly contested, there is zero reason to expect to VIX >30 for the remainder of the year.
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Looking ahead by 6pm EST