The daily cycles are now key to focus on, the 'old leader'...is leading the way lower....
The transports is again leading the way...and its even quite close to breaking the big 5000 level - which I warned about last night. You can see a clear bear flag...and its arguably close/is breaking it already this morning.
I'm guessing we do seem the tranny break 5k...and that in my view means sp'1300 WILL be broken...and then 1291...opening up considerably lower levels.
As was the case since the 16 day down cycle, we've had ZERO panic/capitulation in this market. Perhaps this wave lower..is where we will see it.
I suppose I could label the past week a wave'2...in which case today is the start of a 3 - a severe collapse wave..but for the moment..lets just see if we can first break 1300.
I'm guessing we will...no later than the Friday open.