US equity indexes closed significantly lower, SPX -58pts (1.4%) at 4229. Nasdaq comp’ -1.9%. Dow -1.3%. The Transports settled -0.8%. R2K -1.7%
sp’daily5
nasdaq comp’
r2k
transports
Summary
SPX: the second day lower of two, printing a new cycle low of 4216, if recovering a little to settle -1.4% to 4229. Momentum ticked back lower, and is on the low side.
Teal gap is looking out of range before the weekend.
Any price action <4200 would merit alarm bells, and offer a straight run to around psy’ 4K, which would deal with five of the six legacy price gaps.
Psy’4K appears probable before end month.
Secondary target would be the 3600/3500s, as seem a threat by mid Nov’.
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NAS: settling -1.9% to 13059… if above last week’s low. I lean s/t bullish, and I’d note the 50dma in the 13700s. As of next Tuesday, upper trend will offer massive resistance around 13800s.
R2K: a third day lower, settling -1.7% to 171.15. Today’s candle is spiky from around yellow gap. S/t bullish… resistance 175/176s. More broadly… 167s, and I’d note the Oct’2022 159s.
Trans: a third day lower, settling -0.8% to 14681… the first close under the 200dma since June 1st. The door is open to the April low of 13400… if s/t bullish.
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VIX’daily
Volatility picked up, the VIX printing 20.48 – the highest since May, if cooling back to settle +12.3% to 19.78. Momentum ticked back upward, and is on the high side. Today’s candle is distinctly spiky from around the key 20 threshold. I’d still be open to some cooling to the 16/15s.
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Looking ahead by 6pm EST