Friday, 6 May 2016

Daily Index Cycle update

US equities closed on broadly weak, sp -0.5pts @ 2050. The two leaders - Trans/R2K, settled lower by -1.1% and -0.5% respectively. Near term outlook offers a break of the sp'2040 threshold. The big unknown is whether the two soft lows of 2039/33 will hold. A weekly close in the 2020s would lead to 2000/1990s, before next bounce.





It is highly notable that two leaders have very clear breaks of trend from the Jan/Feb' lows, and both are leading the rest of the other indexes lower.

Right now, equity bears have a 'best downside case' to the sp'2000/1990s, before next bounce of at least 3-4%.

a little more later...