Tuesday, 31 January 2017

Bearish start to the week

US equities closed broadly weak, sp -13pts @ 2280 (intra low 2268). The two leaders - Trans/R2K, settled lower by -1.2% and -1.3% respectively. VIX settled +12.3% @ 11.88. Near term outlook offers a bounce into month end to the sp'2286/94 gap zone. More broadly, the 2320/30s still look probable.




It was a rather bearish start to the week, with all US equity indexes quickly unravelling in the opening 30 minutes of trading.

Whether you want to blame President Trump, or just a 'cyclically over-stretched market', doesn't much matter.

What does matter though is to keep things in perspective. One significant wave lower does not negate what we've seen since early November.. nor even what was built across last week. On balance, another push higher looks due.. at least to the 2320/30s.

Goodnight from London