US equity indexes closed moderately mixed, SPX +16pts (0.4%) at 4381. Nasdaq comp’ +0.9%. Dow -0.01%. The Transports settled +0.4%. R2K -0.8%
sp’daily5
nasdaq comp’
r2k
transports
Summary
SPX: printing 4351, but recovering to settle +0.4% to 4381. Today’s candle is arguably bullish engulfing (I say arguably, as it wasn’t above yesterday’s intraday peak), and leans s/t bullish.
Momentum ticked lower for a fourth day, but remains positive. Upper daily bollinger will be offering the 4470/80s next week.
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NAS: printing 13441, but recovering to settle +0.9% to 13630. Today’s candle is bullish engulfing, and leans bullish into the weekend.
R2K: the fifth day lower of six, settling -0.8% to 183.30. Wednesday’s reversal candle failed to play out. Momentum has turned negative, as the setup leans bearish… if only a few days.
Trans: a second day higher, settling +0.4% to 14794. First support 10MA.. 14597.
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VIX’daily
Volatility was subdued, the VIX breaking a new multi-year low of 12.73, and settling -2.2% to 12.91. Momentum ticked lower for a second day, and remains marginally negative. Today’s candle is bearish engulfing, and leans s/t bearish.
As noted yesterday… with a new multi-year low in the VIX, its supportive to the equity bulls. Whilst you can argue its hyper-complacency, this could last much of the summer*
*I remain open to a spike in mid July, but I still see the VIX CALL trade as dead until monthly momentum is close to turning positive, and that isn’t going to happen until at least September.
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Looking ahead by 6pm EST