US equity indexes mostly closed significantly lower, SPX -103pts (1.6%) at 6538. Nasdaq comp’ -2.1%. Dow -0.8%. The Transports settled -1.4%. R2K -1.9%
sp’daily5
nasdaq comp’
r2k
transports
Summary
SPX: an early high of 6770, but swinging powerfully lower to 6534, and settling -1.6% to 6538. The break of the Trump-tariff low of 6550 is significant. Today’s candle is bearish engulfing, and I’d note the 200dma in the 6160s.
NAS: an early high of 23147, but swinging powerfully lower to settle -2.1% to 22078. Today’s candle is bearish engulfing, and I’d note the 200dma in the 20200s.
R2K: an early high of 239.10, but settling -1.9% to 229.05. Today’s candle is bearish engulfing, and I’d note the 200dma in the 219s.
Trans: a sixth consecutive daily decline, settling -1.4% to 15525. Today’s candle is bearish engulfing, with an upper spike from the 10MA. Soft support 15K.
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VIX’daily
Volatility saw an early low of 19.28, spiking to 28.27, and cooling back to settle +11.7% to 26.42. Daily momentum accelerated upward, and is on the high side. Today’s candle is bullish engulfing – an appropriate mirror to the bearish engulfing SPX candle.
A weekly VIX settlement above the key 20 threshold appears a given, and bodes broadly bearish equities into December. We can start to think about VIX 40/50 before Santa delivers.
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Looking ahead by 6pm EST