US equity indexes mostly closed significantly lower, SPX -75pts (1.7%) at 4412. Nasdaq comp’ -2.2%. Dow -1.2%. The Transports settled +0.4%. R2K -0.7%.
sp’daily5
nasdaq comp’
r2k
transports
Summary
SPX: the 6th day lower of 9, settling -1.7% to 4412… notably under the 50dma. Note the lower bollinger at 4334, which is a key target for Tuesday. Bulls could argue price structure is setting up some kind of ABC bounce, with a C up, that will take us into May. I’m inclined to that view.
NAS: the 6th day lower of 9, settling -2.2% to 13411. Today’s candle offers zero sign of a s/t floor. Support 13k, and then the 12500s. Best guess… the latter hold into May, if not June.
R2K: the 7th day lower of 9, settling -0.7% to 196.52. Bears could argue multi-week/month price structure is just a giant bear flag. Natural target remain the Jan’2020 166s.
Trans: resilient to the main market, settling +0.4% to 14528. I’d note the 10MA is now under the 50 and 200dma.
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VIX’daily
Volatility picked up, the VIX settling +15.2% to 24.37. Momentum is increasingly positive. Note the upper bollinger in the 27s, which is a valid target on Tuesday.
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Looking ahead by 6pm EST