Friday 18 May 2012

Daily Cycle Update

A really bad end to the day for the bulls. For those holding short...congrats, you've probably more gains to come. The VIX is starting to confirm the market is getting a little edgy with a close in the mid 24s. Currently, there is no end in sight to this 12 day down cycle.


IWM, daily



Dow



SP'500



Transports


Summary

All indexes are now moving into freefall/empty air territory. There are certainly endless levels of support, but the weekly and monthly targets are all suggesting significantly lower levels (equivilent to sp'1150/00 by end July) and this could feasibly be achieved in this wave if the market starts to panic.

Its clear, there are no buyers at these levels, and the selling hasn't even started yet. Either some 'surprise' annoucement comes from the EU regarding bank protection..or this wave lower will surely continue.

Most important of all today, the Transports index broke and closed under the hugely important 5000 level. The monthly charts are arguably now issuing a huge confirmation warning for the rest of summer 2012.