US equity indexes closed significantly lower, SPX -44pts (1.1%) at 3854. Nasdaq comp’ -2.3%. Dow -0.5%. The Transports settled -1.1%. R2K -2.0%.
sp’daily5
nasdaq comp’
r2k
transports
Summary
SPX: settling -1.1% to 3854. Momentum ticked lower, and remains on the moderately high side. Note the 50dma at 3966… just under teal gap. ANY daily close >4k would offer a big test of the 200dma (4376).
I accept the latter as ‘crazy talk’, but it is a valid scenario, and those considering ‘heavy short’ should be… careful.
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NAS: settling -2.3% to 11372. Equity bulls should be desperate to clear the 50dma. If yes… then a run to the 12500/13000 zone. M/t bearish psy’ 10k.
R2K: settling -2.0% to 172.02. Friday’s reversal candle failed to play out. Bears should be mindful of upside green gap. M/t bearish 150s.
Trans: settling -1.1% to 13425. Bears could argue s/t price structure is a multi-week bear flag. Monthly support 12200s.
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VIX’daily
Volatility picked up… if only a little, the VIX settling +6.2% to 26.17. Today’s candle is black, and leans s/t bearish VIX and bullish equities.
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Looking ahead by 6pm EST