US equity indexes closed significantly lower, SPX -63pts (1.5%) at 4273. Nasdaq comp’ -1.6%. Dow -1.1%. The Transports settled -1.9%. R2K -1.3%
sp’daily5
nasdaq comp’
r2k
transports
Summary
SPX: the fifth day lower of six, settling -1.5% to 4273. Momentum ticked lower, and is on the VERY low side. Next support is m/t rising trend (from the Oct’2022 low) around 4260.
Note the 200dma at 4194. Any close under the 200dma would merit alarm bells. If this happens before the weekend, it threatens a mini crash to the 3600/3500s next Monday.
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NAS: the fifth day lower of six, settling -1.6% to 13063… notably under the August low. Next support is the 200dma 12491.
R2K: a failed bounce to 177.02, and settling -1.3% to 174.41. Today’s candle is bearish engulfing. Natural target are the 167s.
Trans: the sixth day lower of eight, settling -1.9% to 14819… just above the 200dma. A close <14700 would be decisive, and offer the April low of 13400.
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VIX’daily
Volatility continued to increase, the VIX printing a new cycle high of 19.50, and settling +12.1% at 18.94. Momentum has accelerated to the upside, and is on the VERY high side.
However, VIX 19s are clearly still nothing that merits ‘bearish hysteria’.
Equity bears should be seeking a weekly SPX close <4175 with VIX >20.
If yes, the setup for Monday threatens a mini crash.
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Looking ahead by 6pm EST