US equity indexes closed broadly lower, SPX -47pts (1.1%) at 4400. Nasdaq comp’ -0.9%. Dow -1.1%. The Transports settled -0.8%.
sp’daily5
nasdaq comp’
transports
Summary
SPX: a day of considerable minor chop, until the FOMC minutes appeared, giving the algos the excuse for a late day spiral to 4397, and settling -47pts (1.1%) to 4400. Momentum ticked lower, and offers zero sign of a floor/turn. Soft support 4372/73 zone, and then the 50dma.
NAS: the fifth day lower of seven, settling -130pts (0.9%) to 14525… fractionally under the 50dma.
Trans: a second day lower, settling -120pts (0.8%) to 14704. Bulls could argue s/t price structure is a bull flag. Alarm bells if the 200dma and the recent low are lost, but that still seems very unlikely.
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VIX’daily
Volatility was very subdued until the 2pm hour, when equities spiraled, with the VIX settling +20.4% to 21.57. Momentum has turned positive. Today’s close above the key 20 threshold is a real problem for Thursday.
As ever, Thursday will be ‘prime for the bears’, whilst OPEX will inherently offer a bounce, and broad chop into the weekend.
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Looking ahead by 6pm EST