US equity indexes mostly closed on a weak note, SPX -12pts (0.3%) at 4766. Nasdaq comp’ -0.6%. Dow -0.2%. The Transports settled +0.6%. R2K -0.2%.
sp’daily5
nasdaq comp’
r2k – via proxy IWM
transports
Summary
SPX: the third day lower of four, settling -12pts (0.3%) to 4766. S/t bearish to the 4730s, with prime target of around psy’4700. The 4900s appear due late January, with 5K a realistic possibility with the Winter Olympics in February.
NAS: lower for a fourth consecutive day, settling -0.6% to 15644. S/t bearish, if only to 16500/400s.
R2K: settling -0.2% to 222.53. Momentum weakened for a second day. S/t bearish 220/219s. An eventual push >228 will be decisive.
Trans: settling +0.6% to 16478. Some cooling to the 16100/16000 zone still appears a threat within 1-2 days.
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VIX’daily
VIX weekly
Volatility was naturally subdued into year end, the VIX settling -0.6% to 17.22. Momentum ticked upward for a second day. Next Monday threatens a mini spike to the key threshold, and that will likely require at/near sp’4700.
For the week, the VIX declined by -4.1%. Weekly momentum ticked lower for a fourth consecutive week, set to turn negative next week. The next realistic opportunity for a significant spike >24 is arguably not until mid/late February.
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a little more… by 6pm EST