US equity indexes mostly closed on a weak note, SPX -30pts (0.7%) at 4170. Nasdaq comp’ -0.3%. Dow -0.6%. The Transports settled -0.4%. R2K +0.6%.
sp’daily5
nasdaq comp’
r2k
transports
Summary
SPX: a real mess of a day, repeated bounces failing, settling -0.7% to 4170. Momentum is increasingly negative, as the recent low of 4114 can be expected to be taken out. Supports 4k, 3815, 3500s, and the 3200s.
NAS: a fourth day lower, settling -0.3% to 12795. The recent low of 12587 has to be expected to be lost. Grand target are the mid/low 11000s.
R2K: settling +0.6% to 194.94. Momentum still turned negative. Grand target are the Jan’2020 166s.
Trans: a fourth day lower, settling -0.4% to 14736. Momentum ticked lower, and will be prone to turning negative on Wednesday. Grand target mid/low 11000s.
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VIX’daily
Volatility was mixed, the VIX printing 37.52, but cooling back to settle -3.6% to 35.13. Momentum ticked upward, and is on the moderately high side.
Bonus chart…
Note that momentum turned positive in February… and is building. A hyper spike to the 50/60s appears probable…. when SPX loses 4K.
Indeed, those looking for a key equity floor, should be looking for a corresponding hyper spike in the VIX on both the weekly AND monthly chart. That still seems some weeks away.
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Looking ahead by 6pm EST