US equity indexes closed significantly higher, SPX +65pts (1.4%) at 4587. Nasdaq comp’ +2.1%. Dow +0.9%. The Transports settled +1.9%. R2K +1.9%.
sp’daily5
nasdaq comp’
r2k
transports
Summary
SPX: a second day higher, settling +1.4% to 4587. Yesterday’s bullish engulfing candle played out. Green gap fully filled. Next resistance is the 50dma and teal gap. I’d note upper bollinger is now down to 4718… and that should act as a firm wall of resistance into early March.
NAS: a second day higher, settling +2.1% to 14490. I’d note the 50dma is nearing the 200dma in the 14700s. I do NOT expect any sustained price action >15k.
R2K: a fourth day higher, settling +1.9% to 206.63. The push above the 203s offers the 50dma in the 212s.
Trans: a second day higher, settling +1.9% to 15657. I’d note the 50dma in the 15800s, with upper bollinger around 16k. I do NOT expect anything sustained above 16k.
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VIX’daily
With positive equities, the VIX was ground lower for a fourth consecutive day, settling -6.9% to 19.96. Volatility is now around the key 20 threshold… which is usually upside resistance. The fact we’ve been holding above 20 for weeks at a time is reflective of underlying, and ongoing concern.
We’re cyclically on the low side, at the current rate, momentum will be prone to turning positive AFTER next Friday’s OPEX… into end month.
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Looking ahead by 6pm EST