US equity indexes closed powerfully lower, sp -95pts (2.8%) at 3331. Nasdaq comp’ -4.1%. Dow -2.2%. The Transports settled -1.3%.
sp’daily5
nasdaq comp’
transports
Summary
SPX: a third day lower, breaking a new cycle low of 3329, and settling -95pts (2.8%) to 3331. Note the 50dma at 3305. On a bounce, the 10MA – currently at 3473, will be strong resistance.
NAS: a third day lower, settling -465pts (4.1%) to 10847, just 7pts above the 50dma. I would note the 10MA in the 11500s, which will be major resistance on a bounce.
Trans: settled -144pts (1.3%) to 11081… effectively settling on key price threshold. I would note the 50dma in the 10200s.
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VIX’daily3
Volatility saw an early high of 35.93, but that made for an opening black 30/60min candle, and the VIX cooled into the afternoon to 30.83. Despite equities breaking a new (closing hour) low of 3329, the VIX did NOT confirm, settling +2.3% to 31.46. Today’s candle is very spiky, and leans to s/t bullish exhaustion, and supports the notion of a s/t equity rebound.
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Looking ahead by 6pm EST