VIX and Index update

US equity indexes closed significantly higher, sp +42pts (1.3%) at 3383. Nasdaq comp’ +1.9%. Dow +1.2%. The Transports settled +0.9%.

sp’daily5

nasdaq comp’

transports

Summary

SPX: opening significantly higher, and pushing to a mid morning high of 3402. The afternoon saw some weak leaning chop to 3374, and settling +42pts (1.3%) to 3383. Last Friday’s black candle did not play out, but then, the s/t cyclical setup did not support it. Note the 10MA at 3428, a brief foray above it to the 3440/60 zone appears probable, before renewed downside.

NAS: settling +203pts (1.9%) to 11056. I would note first resistance of the 10MA in the 11300s.

Trans: settling +97pts (0.9%) to 11379, and that made for a black doji candle, which leans s/t bearish, if only for part of Tuesday.

VIX’daily3

With equities starting the week positive, the VIX melted lower, settling -3.8% at 25.85. Daily momentum is set to turn negative on Tuesday. A challenge of the recent 38s appears probable once OPEX is out of the way.

Looking ahead by 6pm EST