Daily Index Cycle update

The market broke to new lows in late morning, but despite some classic opex chop, the indexes closed moderately higher. The sp' close of 1591 was a good 14pts above the earlier low, and the hourly charts are supportive of further upside on Monday, perhaps into the 1620s.


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Summary

Today was a rather classic opex. Opening minor index gains failed to hold, and across two hours, the sp' swung from 1599 to 1577, which no doubt really spooked a fair few bulls.

With the smaller 15/60min cycles floored, it was no surprise to then see what became quite a significant latter day recovery, although certainly, the gains were choppy.
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Near term price action looks bullish for Monday, and a move into the 1620s looks very viable, before the next wave lower.

If the count/outlook is correct, then we should see a rather severe down wave later next week, perhaps as low as 1550/30s, which would probably equate to VIX in the 25/27 area.

 a little more later....