US equity indexes closed significantly lower, sp -26pts @ 1990 (intra low 1979). The two leaders - Trans/R2K, settled lower by -2.0% and -1.5% respectively. Near term outlook is for continued weakness to the gap zone of 1954/51. The bigger weekly/monthly cycles are more suggestive of 1920/00.
*closing hour action: A new intra low of 1979.05, but then rebounding around 0.5%.
... and that concludes trading day'3 of 2016. The second big daily decline of the year... and the equity bears are giving the mainstream cheerleaders a good scare to begin the year.
There is a lot of chatter about a rebound. Some are even touting new highs.. but that seems ludicrous.
Anyone who gives ANY credence to the bigger weekly/monthly cycles should be well aware of the current broader trend shift to the downside.
more later.... on the VIX