Friday, 8 January 2016

Daily Index Cycle update

US equities closed significantly lower for the third trading day of four this year, sp -47pts @ 1943. The two leaders - Trans/R2K, settled -3.1% and -2.7% respectively. Near term outlook is for continued weakness to the sp'1920/00 zone. If the Friday close is at/near the lows.. Monday will likely see a mini-crash capitulation in the 1700s.




*the 'old leader' - Transports, saw a daily close under the 7K threshold, for the first time since Nov'2013. Next real support in the Trans' is the 5600/500 zone. After that... 5K.

As for the sp'500.. it was also a very bearish close, below the gap zone of 1954/51. Next support - as suggest via the bigger weekly/monthly cycles, is the 1920/00 zone.

Any price action <1900 would be extremely suggestive of a brief mini-crash move to the mid 1700s.

a little more later...