Friday, 24 July 2015

Daily Index Cycle update

US equity indexes closed lower for a third consecutive day, sp -11pts @ 2102 (intra low 2098). The two leaders - Trans/R2K, settled lower by -2.1% and -1.1% respectively. Near term outlook is for continued weakness into early next week, with sp'2080... along with VIX 15s.





*Transports remains the market laggard, with another clear failure at declining resistance/channel. Below 8K, there really isn't any support until the Oct'2014 low of 7700.

For those watching, it was notable to see more significant weakness in the Trans/R2K... leading the broader market lower, and indeed.. we even saw a break under sp'2100 today.

Further weakness to the lower gap zone of sp'2080 looks due in the near term.

a little more later...