US equity indexes closed very significantly higher, SPX +61pts (1.5%) at 4067. Nasdaq comp’ +2.1%. Dow +1.2%. The Transports settled +2.4%. R2K +2.0%.
sp’daily5
nasdaq comp’
r2k – via proxy IWM
transports
Summary
SPX: opening on a positive note, and battling upward across the day to 4076, and settling +1.5% to 4067. Next resistance 4100/4150. Soft target on the next wave lower… 3700.
NAS: a third day higher, settling +2.1% to 12112. Next resistance 12300s. Soft target on the next wave lower… 11000
R2K: a third day higher, settling +2.0% to 187.39. Next resistance 190/193… where the 200dma is nearing. Soft target on the next wave lower… 165s
Trans: the second day high of three, settling +2.4% to 14060. Yesterday’s reversal candle played out. Resistance 14500/600. Soft target on the next wave lower… 12700s
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VIX’daily
VIX weekly
Volatility was ground lower into the weekend, the VIX settling -3.5% to 22.79. Momentum ticked lower, and is set to turn negative at the Monday open. Orange gap appears a given… the only issue is whether red gap 21/20s.
VIX saw a net weekly decline of -10.5%. Momentum remains marginally negative.
We should see a massive spike in volatility into the Fall. First soft target are the 32/33s (upper weekly bollinger), and then the January 38s. A push >50 is feasible, although it will depend on whether equities are stair stepping lower… or ‘crashy’.
In any case, long VIX from around 20 appears a comfortable place to get involved. I’ll consider the Oct’ $30s, I see them printing around $1.50.
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a little more… by 6pm EST