US equity indexes closed on a positive note, SPX +27pts (0.7%) at 3919. Nasdaq comp’ +1.0%. Dow +0.6%. The Transports settled +0.3%. R2K +1.5%.
sp’daily5
nasdaq comp’
r2k
transports
Summary
SPX: early weakness to 3877, but then clawing back upward to settle +0.7% to 3919. Momentum is increasingly positive, and could easily tick upward for another few days. Prime target is teal gap. A brief and marginal foray >4K appears probable, as Mr Market will want to wash out as many short-stops as possible.
NAS: a third consecutive net daily gain, settling +1.0% to 10742. Monday’s black candle initially/briefly played out. Upper bollinger offers the 11100s before the long weekend.
R2K: settling +1.5% to 180.54. Monday’s black candle initially/briefly played out. Massive resistance 185/188s should hold.
Trans: fifth day higher of six, settling +0.3% to 14055. Today’s candle is spiky on the lower side from around the 50 and 200dma. S/t bullish. Upper bollinger offers 14300.
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VIX’daily
Volatility was ground lower, the VIX settling -6.3% to 20.58. Momentum ticked lower, and is set to turn negative at the Wednesday open. Red gap is clearly due to be tagged again, if not fully filled.
Thursday will see the CPI, and Q4 earnings will formally begin on Friday. Typically… both bode for higher volatility… yet we’ve a three day weekend ahead. The default would be for higher equities and lower volatility.
Yours truly would be comfortable launching a short from 4K or higher.
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Looking ahead by 6pm EST