US equity indexes closed broadly higher, SPX +30pts (0.7%) at 4369. Nasdaq comp’ +0.8%. Dow +0.4%. The Transports settled +1.0%. R2K +1.2%.
sp’daily5
nasdaq comp’
r2k
transports
Summary
SPX: a fourth day higher, breaking a new cycle high of 4375, and settling +0.7% to 4369. Momentum ticked upward, and is on the high side. RSI 72s, as we’re overbought. Basic target in a cooling wave is purple gap of 4240/20s.
NAS: a fourth day higher, breaking a new cycle high of 13954, and settling +0.8% to 13573. RSI 74s… overbought.
R2K: a second day higher, settling +1.2% to 187.97. Today’s candle is a little spiky on the upper side, as the market is s/t very over-stretched. Basic cooling to the 183s, as seems realistic before the long weekend.
Trans: a second day higher, settling +1.0% to 14448. Major resistance 14500/600s.
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VIX’daily
Volatility was ground lower, the VIX settling -2.7% to 14.61. Momentum ticked higher for a third day, and might turn positive on Thursday. Soft target 17/18s, the 19/20s on a stretch.
If the VIX does spike Wed/Thurs’, I’d keep in mind that as Friday is the lead into a three day weekend, Friday would be inclined to see VIX cool back.
If I do short Wed’ afternoon, I want OUT on Thursday.
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Looking ahead by 6pm EST