US equity indexes closed broadly weak, SPX -34pts (0.8%) at 4458. Nasdaq comp’ -0.9%. Dow -0.8%. The Transports settled -0.5%. R2K -1.0%.
sp’daily5
nasdaq comp’
r2k – via proxy IWM
transports
Summary
SPX: seeing an early high of 4520, but the gains were shaky from the start, with some cooling into late morning. The early afternoon saw increasing weakness, with a somewhat ugly closing hour, settling -34pts (0.8%) to 4458. Yesterday’s bearish engulfing candle played out. Today’s candle offers no sign of a floor, with next support of 4451/41.
I would note the 50dma at 4424 – which has been broad support since Nov’2020, and the most recent higher low of 4367. I’ve no concerns unless the latter is taken out, which still appears unlikely.
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NAS: a third day lower, settling -132pts (0.9%) to 15115. Momentum has turned fractionally negative, and bodes problematic for at least part of Monday.
R2K: a fifth day lower, settling -1.0% to 221.63. Bulls could still argue price structure is a bull flag. Broadly… it remains chop since February. I STILL expect a bullish breakout >233s.
Trans: a fifth day lower, settling -75pts (0.5%) to 14366. I’d note the 200dma at 14169, and the recent low of 14080.
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VIX’daily
VIX weekly
Volatility was subdued into the afternoon, but with equities seeing broad weakness into the close, the VIX spiked, settling +11.4% to 20.95. Today’s candle is of the bullish engulfing type, and leans at least a little higher next Monday, which is supportive of the sp’4451/41 gap.
For the week, the VIX gained +27.7%. Momentum ticked upward, setting on the marginally positive side. This was the first weekly settlement above the key 20 threshold since June, and this week’s candle offers at least a little higher early next week.
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a little more… by 6pm EST