US equity indexes closed very significantly lower, SPX -90pts (2.1%) at 4138. Nasdaq comp’ -2.5%. Dow -1.9%. The Transports settled -1.6%. R2K -2.1%.
sp’daily5
nasdaq comp’
r2k
transports
Summary
SPX: opening significantly lower, leaning weak into the late afternoon, printing 4129, and settling -2.1% to 4137. Momentum has turned negative. Yellow gap fully filled. Orange gap almost fully filled. We have two upside gaps. I’d note the 50dma at 3969, but that looks a stretch in the very near term.
Special note… spdaily3
I would be open to a 5 wave count. If so, we shouldn’t go much lower, and push upward (if choppily) into next week. The structure IS there, but to be clear, I’d have LOW confidence to be buying anything for such a bounce. I’m merely looking for opportunities to short.
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NAS: the fourth day lower of five, settling -2.5% to 12381. Note the 50dma in the 11800s.
R2K: the fourth day lower of five, settling -2.1% to 190.64. Momentum has turned negative. Support 187s.
Trans: the third day lower of four, settling -1.6% to 14539. I’d note the 50dma in the 13800s.
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VIX’daily
Volatility picked up, the VIX printing 24.62, and settling +15.5% to 23.80. I’d note today’s candle is spiky from first resistance of the upper bollinger in the 24s. We have two downside gaps… an appropriate mirror to the two upside gaps in the SPX.
We should see VIX 30/40s in Sept’, with October threatening >50, not least if the June low of sp’3636 is taken out.
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Looking ahead by 6pm EST