US equity indexes mostly closed on a weak note, SPX -23pts (0.5%) at 4365. Nasdaq comp’ -1.2%. Dow -0.3%. The Transports settled +0.02%. R2K -0.2%.
sp’daily5
nasdaq comp’
r2k
transports
Summary
SPX: a third day lower, settling -0.5% to 4365. Momentum ticked lower for a third day, and threatens to turn negative on Friday. We’ve a quintet of downside gaps to 4k. Right now, even the first 4240/20s looks a stretch.
NAS: a third day lower, settling -1.2% to 13502. Tuesday’s reversal candle failed to play out. Momentum to turn negative on Thurs’.
R2K: settling -0.2% to 184.74. Today’s candle is similar to yesterday, with a spike from key price threshold, its also a hollow red reversal, which leans s/t bullish. Momentum prone to turning negative… as the setup is mixed.
Trans: printing 14596, but settling +0.02% to 14739. S/t structure is a bull flag. Natural target is the Feb’ high of 15888.
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VIX’daily
Despite negative equities, the VIX printed a new multi-year low of 13.10, and settling -4.9% to 13.20. Tuesday’s black candle played out. Momentum remains marginally negative.
The fact the VIX broke a new low, despite weak equities, is strongly supportive to the equity bulls.
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Looking ahead by 6pm EST