US equity indexes closed significantly higher, SPX +56pts (1.5%) at 3878. Nasdaq comp’ +1.5%. Dow +1.6%. The Transports settled +1.3%. R2K +1.7%.
sp’daily5
nasdaq comp’
r2k
transports
Summary
SPX: opening broadly higher, building gains to 3389, and settling +1.5% to 3878. Momentum ticked upward, and should continue into next week. Prime target is the lower end of teal gap in the 3950s, before resuming lower.
NAS: a second day higher, settling +1.5% to 10709. S/t bullish, but nothing >11500. All out alarm bells with <10k in Q1.
R2K: a second day higher, settling +1.7% to 175.81. Momentum ticked upward… 200dma in the 181s looks viable next week.
Trans: settling +1.3% to 13563. Momentum ticked upward, and should continue into next week. I’d note the 200dma around 14000
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VIX’daily
Volatility remained muted, the VIX settling -6.6% to 20.07. Red gap tagged. Momentum ticked lower, and is due to turn negative at the Thurs’ open. Once we’re past BOTH of the three day holiday breaks, volatility should have found a floor, and broadly increase across Q1. First big target will be the Jan’2022 $38s.
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Looking ahead by 6pm EST