Dow, daily
Sp, daily
Transports, daily
Summary
An interesting day. Sure the declines were barely 1% for some indexes, but its the first decent bit of price action in over 5 trading days.
The dow is actually pretty close to breaking the June rising trend line, we only need to hit 12925 tomorrow - a drop of only 75pts to make a clear break. The next key level is 12800, so there is a near term 200pts to the downside available.
Sp' downside target remains 1380, it will be very difficult to break under that. Secondary target - the previous cycle low, is 1354. As I keep highlighting, the bears need sp'1340s to get confident.
The tranny closed under the important 5000 level. A close tomorrow under 5k would be a really important warning, and make for a nice red candle on the rainbow monthly chart.
A little more later