Daily Index Cycle update

A choppy pre-election Monday for the US markets. Opening minor declines of sp 5pts only held for an hour, and then crawled higher across the day. A closing hour mini-ramp saw the sp' try to close >1420, but it failed. The bulls sure are seeing a lot of failed rallies lately.


Dow

Sp'daily5

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Summary

The main indexes continue to have very clear bear flags on their daily cycles. The Sp' is trapped back within last weeks war-zone of 1420/00.

Clearly, any intra-day break under dow 13k, sp'1400, will very likely be an important moment for the market this autumn, and will likely see the VIX break back into the 20s.

*I'm guessing Obama wins a second term. That would surely annoy the republicans, to the extent they'll largely refuse to compromise to delaying the fiscal cliff. If that is the case, then Mr Market will need to significantly factor in a GDP drop of -2 to -5%. - and that's even when assuming 'everything else is okay'.

We may have some very interesting and exciting trading days and weeks ahead.

A little more later..