Tuesday, 10 July 2012

Daily Index Cycle update - slightly bearish

The indexes fell very moderately, on what was a very quiet Monday. Tuesday will surely be a little more dynamic! The slightly higher VIX does confirm the near term continuing downside since the sp'1374 peak last Tuesday. So far though, we're only 22pts lower from that peak, there is a lot of potencial downside from these levels.






All the main indexes declined today - so at least they are all in sync, with no 'weirdness' going on.

Sp' clearly remains in a broad up trend since the June sp'1266 low. Bears need to see a break under 1330 to confirm what could be a giant bear flag (the wave'2) as many out there also believe.

A break of 1330 should offer a quick move down to the big 1300, where we'd surely see a brief bounce. So, it is very possible we'll be trading around 1300 by this Friday. Its well within range, and we're only day'3 down from a MACD cycle perspective.
A little more later...