US equity indexes closed significantly lower, sp -37pts (1.1%) at 3319. Nasdaq comp’ -1.1%. Dow -0.9%. The Transports settled -1.1%.
sp’daily5
nasdaq comp’
transports
Summary
SPX: an opening high of 3362, but leaning weak, and unraveling to 3292 in early afternoon. The late afternoon saw a moderate recovery, settling -37pts (1.1%) to 3319. The s/t cyclical setup offers a 1-2 day bounce, before resuming lower to the mid/low 3100s.
NAS: settling -117pts (1.1%) to 10793. Its notable the Nasdaq is failing at both the 50 and 10dma. I would note the 200dma, which will soon be in the 9500s, some 11% lower.
Trans: swinging from an early high of 11628 (yesterday’s reversal candle did play out… if briefly) to 11398, but settling -120pts (1.1%) to 11431.
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VIX’daily3
VIX weekly
Despite equities settling significantly lower, the VIX never showed any upside power, settling -2.4% to 25.83, as yesterday’s black candle played out. The s/t cyclical setup leans to lower volatility… if only for 1-2 days. A brief foray >40 appears… probable.
The VIX saw a net weekly decline of -3.9%, although momentum still ticked upward, and remains set to turn positive. First resistance is the upper bollinger in the 35s, which appears a given within 1-2 weeks.
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a little more… by 6pm EST