Daily Index Cycle update

The main indexes closed higher by 0.75-1.0%, after some nonsense election related rumours in the late morning. The market managed to hold onto most of the gains, although there was a touch of weakness in the closing hour.


Nasdaq Comp

Dow

Sp'daily5

Summary

So...a day of gains for the bulls, but we remain within VERY clear bear flags on the daily charts for just about every index.

The underlying momentum - see MACD (blue bar histogram) has been resetting itself for six days, and is close to going + cycle. A third fail..post-election, could offer the elusive major wave lower that many of the doomers out there have been seeking since the QE spike highs of mid-September.

Any break under 1397 would open up a swift and slightly scary fast decline to somewhere in the 1345/20 zone.
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The weekly/monthly charts are still suggesting weakness, but it is now a very marginal situation. Another 1-2% higher in the indexes, and those bearish signals will be nullified.

Lets be clear, the remaining 'serious money' on the short side, will have stops between 1450/74.

A little more later