US equity indexes closed rather mixed, SPX -0.2pts (0.0%) at 4108. Nasdaq comp’ -0.4%. Dow +0.3%. The Transports settled +1.1%. R2K +0.8%.
sp’daily5
nasdaq comp’
r2k
transports
Summary
SPX: a day of considerable micro chop, printing 4124, if cooling back to settle effectively u/c at 4108. Momentum ticked lower for a fifth day, and might turn negative on Friday.
I’d note the daily 10MA at 4079… which the bears should be seeking a Wednesday close beneath. If yes… then 4030s before the weekend.
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NAS: printing 12091, but cooling back to settle -0.4% to 12031. Yesterday’s hollow red reversal candle initially played out. Momentum prone to turning negative on Thursday… as reflected in stocks like AAPL and MSFT.
R2K: a third day higher, settling +0.8% to 177.14. Yesterday’s bullish engulfing candle played out. No sign of a turn.
Trans: a third day higher, settling +1.1% to 14361. Yesterday’s bullish engulfing candle played out. Price structure is a valid H/S (starting from last November)… kinda similar to the SPX.
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VIX’daily
Volatility was a little mixed, the VIX printing 18.56, if settling +0.7% to 19.10. Yesterday’s black candle played out. Momentum ticked upward for a fifth day, and will be prone to turning positive on Thursday.
Typically, the biggest equity drops are when momentum crosses back above the zero threshold…. as Thursday looks especially ‘prime for the bears’. Upper daily bollinger will offer the 24/25s, and its arguable that might equate to SPX 4000.
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Looking ahead by 6pm EST