Saturday, 9 April 2016

Daily Index Cycle update

US equity indexes closed moderately higher, sp +5pts @ 2047 (intra high 2060). The two leaders - Trans/R2K, settled higher by 1.1% and 0.4% respectively. Near term outlook offers renewed significant downside next Mon/Tuesday to the sp'2020/10 zone, which should equate to VIX 18s.


Nasdaq comp'



sp'500: a failed rally, with a spiky candle, closing under the 10MA. Underlying MACD (blue bar histogram) is now on the low side. At best, equity bears might see another 2-3 days of downside before yet another bounce.

Nasdaq: a black-fail candle, settling under the 200dma. Further downside of 2% looks well within range next Mon/Tuesday.

Trans: a somewhat spiky candle, unable to hold the 200dma. Renewed downside would be to the 7500 threshold.

a little more later...