Daily Index Cycle update

The main indexes closed broadly higher, with gains between 0.9-1.6%. The transports - the old leader, saw a major breakout, and is now starkly bullish. There is now empty air of around 2% on most indexes until the mid-September FOMC highs are challenged.


IWM, daily

Dow

Sp'daily5

Trans

Summary

It has to be said, today was a devastating blow to anyone holding a near term bearish outlook. The break over last Wednesdays FOMC highs was very decisive, and even the closing hour was once again something of a mini-ramp.

We can be clear on one thing..there is NO sign of a turn lower, or any levelling phase.

I won't be able to take any future index declines seriously until we take out the recent sp'1413 low, with a VIX >17.50.

On the flip side, a few daily closes >1474, and we really will be trading in the twilight zone once again.  All those crazy bull maniacs who were touting sp'1500s by year end, are now a mere 4% away!

A little more later