Still leaning weak

US equity indexes closed broadly lower, SPX -25pts (0.6%) at 4443. Nasdaq comp' -0.4%. Dow -0.8%. The Transports settled -1.1%.

SPX - daily5

VIX - daily3

Summary

US equities opened on a positive note, as the capital markets were pleased with the slightly cooler inflation data. Yet the gains were shaky from the start, and it didn't take long for indexes to turn negative.

Meanwhile...

The phrase 'let them eat cake' comes to mind. Many on Twitter compared the Met Gala event to the Hunger Games.
--

Something different...

Tom probably doesn't look the type of person you hang with, but if you listen to those lyrics, there is something magical being said. The video has already picked up 7M views on Youtube after just a month.
-

The afternoon saw increasing weakness, with the SPX breaking a new cycle low of 4435, as Monday's black candle played out.

Volatility saw an opening reversal with equities, and picked up in the afternoon to 20.47, if settling +0.5% to 19.46, as the key 20 threshold is often difficult to settle above.
-

Moody skies

Full moon will be Sept'20th

–

Extra charts in AH (usually around 5pm EST) @ https://twitter.com/Trading_Sunset

Goodnight from London
--

 

If you value my work on Blogger, Twitter, and would like more of the same, then subscribe to my intraday service! For details and the latest offers, see: https://www.tradingsunset.com

Monday chop

US equity indexes mostly closed a little higher, SPX +10pts (0.2%) at 4468. Nasdaq comp' -0.1%. Dow +0.8%. The Transports settled +0.6%. R2K +0.6%

SPX - daily5

VIX - daily3

Summary

US equities opened on a moderately positive note, but the gains were shaky from the start, with the SPX swinging from 4492 to turning fractionally negative by late morning.

Meanwhile...

... it was just another day on the streets of Philadelphia. The Republican leadership doesn't care. The Democrat leadership doesn't care. Few do.
--

The afternoon saw considerable chop, if leaning on the weaker side. The closing hour saw a moderate recovery, with most indexes settling a little higher, ahead of Tuesday's key inflation data.

Volatility picked up, the VIX printing 21.18, but with equities recovering into the close, settling -7.5% to 19.37. 
--

Air traffic continues to broadly ascend

Bullish or bearish contrails?

–

Extra charts in AH (usually around 5pm EST) @ https://twitter.com/Trading_Sunset

Goodnight from London
--

 

If you value my work on Blogger, Twitter, and would like more of the same, then subscribe to my intraday service! For details and the latest offers, see: https://www.tradingsunset.com

Weekend update - US equity indexes

It was a bearish week for US equity indexes, with net weekly declines ranging from -2.8% (R2K), -2.6% (Trans), -2.1% (Dow), -2.0% (NYSE comp'), -1.7% (SPX), to -1.6% (Nasdaq comp').

Lets take our regular look at six of the main US indexes (monthly candle charts)

sp'500

Nasdaq comp'

Dow

NYSE comp'

R2K

Trans

–

Summary

All six US equity indexes were significantly net lower for the week.

The R2K lead the way lower, with the Nasdaq comp' most resilient.

The Nasdaq comp' broke a new historic high.

More broadly, all six US equity indexes are still holding above their respective monthly 10MA, and I thus see the m/t trend as bullish.

–

Looking ahead

The schedule is light. Highlight of the week will be Tuesday's CPI print.

Earnings:

M - ORCL, VOLT

T - FCEL

W - JKS

T -

F -

-

Econ-data/events

M - US T-budget

T - CPI

W - Import/export prices, Empire state, indust' prod', EIA Pet'

T - Weekly jobs, retail sales, Phil' fed, busi' invent'

F - Consumer sent'. *QUAD-OPEX*

-

Final note

US equities certainly didn't have the best of weeks, but the m/t trend remains very comfortably bullish. I'd note the 50dma for the SPX - currently 4424, which has broadly held as support since Nov'2020. I have to expect that to continue to hold into Q3 earnings.

There remain two key concerns. First, a severe geo-political 'event'. I'm sure you can think of a few. The second aspect is health, and that is all I can note about that on these Google based pages.  

If you read around the blogosphere this weekend, you'll see continued crash calling from the usual suspects. They've been calling for a crash long before sp'4000. Eventually they'll be right, and will have the guile to still say 'see... I told you!'.

Sure we're due a correction of 5-10%, or even a larger (if brief) bear market drop >20%, but that might easily not occur until next year. I have zero concerns about the Fed and the looming QE taper. Further, eventual rate hikes are inherently bullish, not least for the banks.  

So whilst some are expecting a screen full of red boxes next week, I would look to AAPL, the energy sector, commodities (especially WTIC >psy' $70), and the cyclical/epicenter stocks for renewed upside.

For more charts, and whatever else I want to post about - outside the control of the mainstream media hacks, you know where to find me in... the twilight zone.

If you value my work on Blogger, Twitter, and want more of the same, subscribe to my intraday service! For details and the latest offers, see: https://www.tradingsunset.com

Have a good weekend

--

*the next post on this page will likely appear 5pm EST on Monday.