US equity indexes closed broadly weak, SPX -23pts (0.5%) at 4326. Nasdaq comp’ -1.4%. Dow -0.02%. The Transports settled -1.4%. R2K -2.3%.
sp’daily5
nasdaq comp’
r2k
transports
Summary
SPX: early upside to 4428, but a full reversal to 4309, and settling -23pts (0.5%) to 4326. The 8th day lower of 10. Until the market is back above first resistance of the 10MA – currently 4475, the market should be seen as s/t broken.
Its possible we’ll just put in a marginal lower low <4222, and then eventually re-take the 10MA, but ongoing price action isn’t pretty. Further, I’d consider the ‘two leaders’ – Trans and R2K, both of which bode badly for the SPX, and the rest of the market into early February. If you’re not hearing alarm bells… you’re not paying attention.
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NAS: settling -1.4% to 13352. Any daily close <13k would and offer the 38% fib’ of 12500, with grand support of 10k.
R2K: settling -2.3% to 191.45… a new cycle closing low. Next major support are the Jan’2020 166s.
Trans: settling -1.4% to 14810. Next major support 14000/13900.
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VIX’daily
Volatility saw a morning low of 28.42, but recovered to 33.00, and settling -4.6% to 30.49. Whilst daily momentum ticked lower, I’d keep in mind that weekly and monthly momentum cycles have both recently turned positive, and threaten far higher volatility, at least to the 50/60s.
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Looking ahead by 6pm EST