US equity indexes mostly closed higher, SPX +43pts (1.1%) at 4159. Nasdaq comp’ +1.8%. Dow +0.5%. The Transports settled -0.6%.
sp’daily5
nasdaq comp’
transports
Summary
*on reflection, it was a more diverse day than many might recognise. Whilst tech powered upward, the Transports struggled. You could draw bear flags on the SPX and Nas’, which would offer lower levels within 2-4 days.
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SPX: opening on a positive note, and pushing to 4172, and settling +43pts (1.1%) to 4159. Yesterday’s spiky reversal candle played out. The s/t cyclical setup threatens another swing lower, as 4K appears possible next Wed/Thurs. That scenario would be dropped on any daily close >4200.
NAS: settling +236pts (1.8%) to 13535. Yesterday’s reversal candle played out. Today’s close is notably still shy of the 50dma at 13576. The 200dma in the 12500s remains a valid target for next Wed/Thurs.
Trans: a fourth consecutive day lower, settling -91pts (0.6%) to 15471. I’d note the 50dma in the 14900s… and that will be around 15K next week.
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VIX’daily
With equities broadly higher, the VIX cooled back, settling -6.8% to 20.67. Yesterday’s spiky black candle played out. Momentum ticked lower, but remains positive, as a spike to the 26/27s appears realistic after OPEX is out of the way.
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Looking ahead by 6pm EST