VIX and Index update

US equity indexes mostly closed on a positive note, sp +17pts (0.5%) at 3401. Nasdaq comp’ +1.2%. Dow u/c. The Transports settled +0.8%.

sp’daily5

nasdaq comp’

transports

Summary

SPX: seeing an early high of 3419, and seeing some late day cooling to 3389, and settling +17pts (0.5%) to 3402. Today’s candle is black, and leans s/t bearish, at least for part of Wednesday. The bears could argue that multi-day price structure is a big bear flag.

NAS: settled +133pts (1.2%) to 11190. Today’s candle is a very subtle black doji candle, and leans s/t bearish, at least for part of Wednesday.

Trans: settling +95pts (0.8%) to 11476, which is notably above the mid Jan’ high. Next resistance is the 2018 historic high of 11623.

*Special note: unlike last Friday, when we also saw black candles in the SPX and Nasdaq, and I dismissed them – due to the s/t cyclical setup, the current setup does favour the equity bears.

VIX’daily3

Volatility was itself subdued, the VIX settling -1.0% at 25.59. Daily momentum has turned fractionally negative. A spike to the 29/30 zone wouldn’t be a surprise late Wed/early Thursday.

Looking ahead by 6pm EST