US equity indexes closed very significantly higher, sp +67pts (1.9%) at 3510. Nasdaq comp’ +2.6%. Dow +1.9%. The Transports settled +2.4%.
sp’daily5
nasdaq comp’
transports
Summary
SPX: a fourth daily gain, seeing a high of 3529, and settling +67pts (1.9%) to 3510. Momentum has turned positive. Today’s candle is spiky from s/t trend-resistance (upper side of a larger triangle/bullish pennant). We have three downside gaps, which remain a threat, negated if >3550.
Best guess… downside to at least the low 3400s. More broadly, new hist’ highs appear a given.. regardless of the election outcome, with stim bill 4 still due.
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NAS: a fourth consecutive daily gain, settling +300pts (2.6%) to 11890. Momentum has just turned positive.
Trans: the fourth day higher of six, settling +277pts (2.4%) to 11669. Zero sign of a s/t top.
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VIX’daily3
Volatility cooled for a fourth day (an appropriate mirror to the SPX), the VIX printing 26.04, and settling -6.7% to 27.58. Momentum turned negative. Today’s candle is an extremely subtle hollow red spiky reversal, and leans toward higher volatility into the weekend. I note subtle, as we settled just 0.02pts above the open, which is about as marginal a reversal as we’ll ever see.
In theory… Friday should see some equity cooling. Certainly, with the ongoing election uncertainty, there is threat of some market drama into the weekend.
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Looking ahead by 6pm EST