US equity indexes closed powerfully lower, SPX -132pts (3.2%) at 3991. Nasdaq comp’ -4.3%. Dow -2.0%. The Transports settled -2.9%. R2K -4.2%.
sp’daily5
nasdaq comp’
r2k
transports
Summary
SPX: opening very significantly lower. There were numerous bounce attempts, but all failing to print 3975 in the closing hour, and settling -3.2% to 3991. Next support is the 38% fib’ of 3810. Primary target 3500s.
NAS: a third day lower, settling -4.3% to 11623. Next support is the lower monthly bollinger in the 11100s.
R2K: a third day lower, settling -4.2% to 174.93. Grand target of the Jan’2020 166s are nearing. Secondary support 155s, which might sync with the SPX 3500s.
Trans: a third day lower, settling -2.9% to 14469. I’d note the Sept’2021 low of 13946.
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VIX’daily
Volatility picked up, the VIX settling +15.1% to 34.75. Momentum ticked back upward, for what was the highest VIX close since early March. Its somewhat surprising that with the loss of SPX 4K, we’ve not seen a VIX spike into the 40s.
As even CNBC Santolli noted though, equity downside action is very orderly, as we’re just not seeing any real panic. Its just a stair step lower, with VIX churning the 30s, reflective of a market prone to daily 2-3% swings.
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Looking ahead by 6pm EST