Monday 8 February 2016

Closing Brief

US equity indexes began the week with very significant declines, sp -26pts @ 1853 (intra low 1828). The two leaders - Trans/R2K, settled lower by -0.3% and -1.6% respectively. Near term outlook is very borderline, with serious threat of the Jan'20th low of 1812 bring broken.. as the Nasdaq and R2K have now done so.


sp'60min



Summary

*closing hour action:  a bit of chop, but then a clear break to the upside, with bears rushing to cover, terrified of what Tue/Wednesday might bring.
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First, it is notable that the market floored at the typical afternoon turn time of 2.30pm. Always kooky how that is often the case.

With the market having cooled from last Monday afternoon @ 1947 to 1828, that is a pretty powerful swing, and its not like there was any particular spooky news. It is arguably the underlying econ/commodity related problems continuing to build.
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The hourly MACD (blue bar histogram) cycle is set to turn positive @ 10am tomorrow, so the inclination will be for upside, at least to 1880.

Sustained action >1900 is clearly out of range until Yellen has 'inspired' things.

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This market IS a beast...



I highly recommend the movie... which has a seriously intense score.

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more later... on the VIX