US equity indexes closed broadly lower, SPX -55pts (1.0%) at 5695. Nasdaq comp’ -1.2%. Dow -0.9%. The Transports settled -0.2%. R2K -0.8%
sp’daily5
nasdaq comp’
r2k
transports
Summary
SPX: an afternoon low of 5686, and settling -1.0% to 5695. Momentum ticked lower, if only marginally negative. Next support… the lower end of yellow gap 5618. To be decisive… bears need <5600, which would offer the mid 5300s… where the 200dma will be in Halloween week.
NAS: settling -1.2% to 17923. Price structure is an ascending wedge (not labelled) but any price action <50dma (<17400) would provisionally confirm it.
R2K: settling -0.8% to 217.45. Friday’s black candle played out.
Trans: settling -0.2% to 15782. Friday’s black candle played out. Today’s candle is a spiky hollow red reversal, and leans s/t bullish, if only early Tues’.
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VIX’daily
Volatility picked up, the VIX printing 23.03, and settling +17.9% to 22.64. Momentum ticked upward, and is on the moderately high side.
Some perspective…
More than anything, I’d note monthly momentum (green bar histogram) is accelerating to the upside, and threatens a far higher VIX. Considering the geo-political situation… with the uncertainty of the election, VIX 50s really wouldn’t be a surprise.
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Looking ahead by 6pm EDT