US equity indexes closed on a weak note, SPX -12pts (0.3%) at 4115. Nasdaq comp’ -0.03%. Dow -0.5%. The Transports settled -0.5%.
sp’daily5
nasdaq comp’
transports
Summary
SPX: an early low of 4061, but recovering to settle -12pts (0.3%) to 4115. Today’s candle is a spiky hollow red reversal, and leans s/t bullish, if only for part of Thursday. Last week’s low of 4056 still looks vulnerable to being broken under. I would note the 50dma at 4081.
NAS: an early low of 13072, but recovering to settle -3pts (0.03%) to 13299. Today’s candle is a reversal, and leans s/t bullish, if only early Thursday. I would note the 200dma in the 12500s, which remains a valid target.
Trans: the sixth day lower of eight, settling -79pts (0.5%) to 15563. No clear sign of a floor/turn, and I would note the 50dma in the 14900s.
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VIX’daily
With equities opening on an ugly note, the VIX spiked to 25.96. With a latter day recovery, the VIX cooled back to settle +3.9% to 22.18. Today’s candle is black, and is an appropriate mirror to the reversal seen in the SPX.
Whilst Thursday will be inclined to open on a positive note, I still see the market as s/t vulnerable into early next week. A more natural floor would be in association with the Nasdaq comp’ around the 200dma, currently some 5% lower.
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Looking ahead by 6pm EST