Tuesday, 17 May 2016

Daily Index Cycle update

US equity indexes closed significantly higher, sp +20pts @ 2066. The two leaders - Trans/R2K, settled higher by 0.7% and 1.2% respectively. Near term outlook offers further upside to the 2085/90 zone, before renewed weakness to at least the 2010s - where the 200dma is lurking. An eventual break <2039 remains due.




*note a viable large bear flag (sp' daily chart.. pink). Even if its just part of an ABC correction... it would still offer the 2010s within the next week or two.

A day for the equity bulls, but broadly... the market remains stuck in a relatively narrow trading range - much like spring/early summer 2015.

A major break to the downside... rather than another push into the 2100s remains the far higher probability.

a little more later..