US equity indexes closed a little mixed, SPX -9pts (0.2%) at 4128. Nasdaq comp’ u/c. Dow -0.5%. The Transports settled +0.6%. R2K +0.2%.
sp’daily5
nasdaq comp’
r2k
transports
Summary
SPX: the fourth day lower of five, but price action was very muted, settling -0.2% at 4128. Orange gap has effectively been filled. We’ve two upside gaps, as another bounce seems more probable than not.
NAS: settling u/c at 12381. The 50dma and red gap appear more realistic after another bounce.
R2K: settling +0.2% to 190.95. The 187s are clearly possible before the weekend, but the s/t cyclical setup doesn’t support it this side of Powell.
Trans: settling +0.6% to 14633. Momentum ticked lower, and is on the moderately low side. Bulls could argue price structure is offering a minor wave’4, with a final fifth to challenge the 200dma.. again.
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VIX’daily
Volatility was subdued, the VIX settling +1.3% to 24.11. Today’s candle is subtly black, and leans s/t bearish for volatility, and by default… bullish equities. Momentum ticked upward, and is on the moderately high side. We have two downside gaps (an appropriate mirror to the two upside SPX gaps).
I’d like to short equities with VIX red gap, and SPX green gap.
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Looking ahead by 6pm EST