Closing Brief

A bit of a choppy closing hour, and with the VIX closing near the high of the day, its moderately suggestive of a bearish Monday and start to Q4.

The closing hourly index charts...


IWM

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Trans

Summary

I really quite like the idea of a small H/S within what 'might' be a larger H/S formation. If correct, it actually suggest 1410/00 is possible before the current down cycle completes.

I've seen others out there seeking 1375/60 next week. I find that pretty optimistic, although the VIX weekly chart offers good upside into the mid 20s.

With the tranny closing <5000 for the first time since Dec'2011, my primary red flag for October has been achieved. Much more on that issue later.