US equity indexes closed significantly higher, SPX +65pts (1.4%) at 4791. Nasdaq comp’ +1.4%. Dow +1.0%. The Transports settled +1.2%. R2K +1.0%.
sp’daily5
nasdaq comp’
r2k
transports
Summary
SPX: a fourth day higher, breaking a new hist’ high, settling +65pts (1.4%) to 4791. Today’s candle is a clear break above the upper side of what is a giant bullish pennant/triangle.
At best… the bears might be able to see a back test… to around 4720/4700, before resuming upward. The 4800s are clearly a given, the only issue is whether a major ramp to test 5K in Jan/Feb.
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NAS: settling +1.4% to 15871. Upper bollinger resistance 15900s. New hist’ highs are possible before end year… if not more viable in early Jan’
R2K: a fourth day higher, settling +1.0% to 224.21. Approaching green gap resistance. Any price action >228s would be decisive, and offer new hist’ highs within Jan’/Feb.
Trans: settling +1.2% to 16588. We have a marginal break above s/t declining trend, as momentum has turned positive.
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VIX’daily
With significantly positive equities, volatility was ground lower for a fourth day, the VIX settling -1.6% to 17.68. I’d be open to a sporadic spike to the 19/20s – if sp’4720 or so. Broadly, VIX could be expected to be sustainably <20 into February.
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Looking ahead by 6pm EST