US equity indexes closed broadly higher, SPX +29pts (0.6%) at 4725. Nasdaq comp’ +0.8%. Dow +0.5%. The Transports settled +1.4%. R2K +0.8%.
sp’daily5
nasdaq comp’
r2k – via proxy IWM
transports
Summary
SPX: opening a little higher, and building gains into the late afternoon to 4740, and settling +29pts (0.6%) to 4725. Momentum has turned positive, and should carry across into next week/year end. Today saw a break above the upper side of what is a giant bullish triangle. Whilst today’s candle is rather spiky, it would not be surprising to see a straight push to new historic highs next Mon/Tuesday.
NAS: settling +0.8% to 15653, as momentum has turned positive. New hist’ highs appear due by mid January.
R2K: a third day higher, settling +0.8% to 222.07. A second day above s/t declining trend. Any price action >228 would be decisive, as new hist’ highs appear due late Jan’/Feb.
Trans: settling +1.4% to 16186. Momentum due to turn positive next Mon/Tuesday, which should be enough to see a break above s/t declining trend. Any price action >16600 would be decisive.
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VIX’daily
VIX weekly
With broadly positive equities, the VIX was ground lower into Christmas, settling -3.6% to 17.96. Momentum ticked lower, and is on the low side. This week’s settlement under the key 20 threshold is significant, and will be seen by many as an equity buy signal.
For the week, the VIX declined by -16.7%. Weekly momentum ticked lower, and is due to turn negative within 1-2 weeks.
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a little more… by 6pm EST