Daily Index Cycle update

The main indexes opened lower, rallied into early afternoon, but then saw some rather significant weakness into the close. The sp' closed -16.7pts (1.0%) @ 1626, a mere 4pts from the opening low. Near term trend looks weak, bulls need to hold the sp'1620s early tomorrow.


R2K

sp'daily5

Trans

Summary

So, we saw some rather good swings in the market today.  The opening decline was something many were looking for today, and we have filled the gap in the 1625/22 zone. Naturally, the market ramped pretty hard to sp'1640, but has now put in a lower high.

The bulls might have a VERY serious problem if early Wednesday takes out todays low of sp'1622 - a mere 4pts lower.

The big level remains sp'1598.  Frankly, if the market breaks that, there is really no support until the lower bollinger on the weekly charts - currently @ sp'1480. That is indeed a very significant 145pts lower.

How we trade tomorrow will shape the next few days..if not the next few of weeks.

a little more later...