With equity indexes closing significantly lower for the second trading day of three this year, the equity bull maniacs should be concerned at increasingly bearish price action/structure. Indeed, seen on the bigger monthly charts, there is a giant multi-month bear flag that stretches from the Aug' low of sp'1867.
*the weekly 'rainbow' candle remains an outright bearish red, having broken rising trend/support, and taking out the Dec'14th low of 1993.
First obvious target on the bigger weekly/monthly cycles is the lower bollinger band, in the 1920/00 zone.
A January net decline looks highly probable... certainly remaining below the 10MA (2044).
It remains important to keep in mind this bearish shift in the bigger trends is not just the case in US indexes, but across most world equity markets.
Thursday will see the latest weekly jobs data.
*Fed officials Lacker and Evans will be talking on the economy.
Goodnight from London