US equity indexes closed rather mixed, SPX -22pts (0.4%) at 5460. Nasdaq comp’ -0.7%. Dow -0.1%. The Transports settled +1.0%. R2K +0.4%
sp’daily5
nasdaq comp’
r2k – via proxy IWM
transports
Summary
SPX: a new hist’ high of 5523, but cooling back to 5451, and settling -0.4% to 5460. Today’s candle is spiky on the upper side, bearish engulfing, and leans bearish for at least part (probably the morning) of Monday. Momentum has turned negative.
NAS: a new hist’ high of 18035, but settling -0.7% to 17732. Today’s candle is bearish engulfing, and leans s/t bearish, at least for part of Monday.
R2K: a second day higher, settling +0.4% to 202.93. Today’s candle is black, and leans bearish, if only early Monday.
Trans: the sixth day higher of nine, settling +1.0% to 15415. Legacy minor green gap remains a natural target.
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VIX’daily
Volatility was a little mixed, the VIX printing 12.06, but seeing a mini spike to 12.76, and settling +1.6% to 12.44. Daily momentum remains marginally positive
VIX weekly
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For the week, the VIX declined by -5.8%. Weekly momentum remains marginally negative.
VIX, monthly
For the month, VIX declined by -3.7%. Monthly momentum remains fractionally negative.
For now, I still see the VIX CALL trade as dead. However, on 2-4 month outlook, its clearly not bold to expect VIX to at least climb to around the key 20 threshold. Were I to be long VIX, I’d want at least Nov’ strike, covering the election.
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a little more… by 6pm EDT