Tuesday 2 December 2014

Daily Wrap

The final month of the year began with some equity weakness, sp -14pts @ 2053. Having ramped from 1820 to 2075, this market is unquestionably still due at least some degree of retrace. Best case for the bears.. a move to 2020/00.. before the 2100s.


sp'daily5


Trans


Summary

So, a moderate decline for the broader market, but with a pretty significant daily decline in the Trans. No doubt, the bounce in Oil prices put downward pressure on this sector today.

In terms of a retrace, best guess remains sp'2020/00. A sustained period of trading under the giant 2000 threshold looks unlikely. After all, the BoJ will be out there buying. We've not forgotton about them already.. have we?


Oh noes.. a blue candle!

The opening weekly 'rainbow' candle is blue.. and with the 10MA around sp'2000... it makes for a natural retrace target... but more viable next week.

sp'weekly7


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A look at the VIX.. which settled higher by a moderate 7.2% @ 14.29.

VIX' daily3


At best, a move into the 17-20 zone, but considering the broader hyper-ramp from mid October, a sustained move into the 20s looks highly unlikely.
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Weekend webinar from Riley - highly recommended

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Closing update from Riley

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Looking ahead

The only data of note is construction spending.

*there are two fed officials on the loose, and as today showed, market remains particularly attentive to any mention of interest rate hikes.
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Goodnight from London