US equity indexes closed very significantly lower, SPX -62pts (1.5%) at 3963. Nasdaq comp’ -1.6%. Dow -1.4%. The Transports settled -2.1%. R2K -2.0%.
sp’daily5
nasdaq comp’
r2k
transports
Summary
SPX: opening moderately weak, a few bounce attempts, but broadly sliding to 3955, and settling -1.5% to 3963. Friday’s reversal candle failed to play out. Momentum is due to turn negative at the Tuesday open. On Tuesday… rising trend support (from the 3491 low) will be in the 3920s.
Natural target is yellow gap… starting in the 3850s. I’d note the 50dma at 3794 as seems realistic by Dec’8th.
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NAS: settling -1.6% to 11049. Momentum is due to turn negative within 1-2 days. I’d note orange gap extends down to the 10300s.
R2K: settling -2.0% to 181.81. Momentum has turned negative. Orange gap tagged again. I’d note the 50dma in the 176s.
Trans: settling -2.1% to 14145. Momentum has turned negative. Its arguable that 14797 is a key cycle high from the Sept’ low. Soft target is orange gap.
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VIX’daily
Volatility picked up, the VIX settling +8.3% to 22.21. Friday’s black candle failed to play out (a mirror to the failed reversal candle in the SPX). Momentum ticked higher, and is due to turn positive within 1-2 days. I’d note the upper bollinger, which offers the bulls the 26/27s.
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Looking ahead by 6pm EST