US equity indexes closed broadly higher, SPX +40pts (0.9%) at 4338. Nasdaq comp’ +1.5%. Dow +0.6%. The Transports settled +0.4%. R2K +0.4%
sp’daily5
nasdaq comp’
r2k
transports
Summary
SPX: a third day higher, printing a new multi-month high of 4340, and settling +0.9% to 4338. Friday’s black candle failed to play out. RSI 69s. Momentum ticked back upward.
On a swing lower, natural target is purple gap of the 4240/20s.
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NAS: a third day higher, printing a new multi-month high of 13465, and settling +1.5% to 13461. Friday’s black candle failed to play out. RSI 72s… overbought.
R2K: settling +0.4% to 185.85. Bulls can argue structure is a bull flag.
Trans: settling +0.4% to 14305. Bulls can argue structure is a bull flag.
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VIX’daily
Volatility picked up, the VIX setting +8.5% to 15.01. Momentum ticked upward for a second day, and is due to turn positive on Wednesday. Upper bollinger offers the key 20 threshold, although that looks a stretch.
With equities broadly higher, today’s price action is very unusual, the VIX even seeing a mini spike in the 15mins of AH trading to 15.02.
With CPI ‘out of the way’, the default for early Tuesday would be a cooling VIX with equities net higher… if marginally.
Wed/Thurs’ does appear to offer a spike in the VIX… with equities net lower.
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Looking ahead by 6pm EST