Daily Index Cycle update

The main indexes all closed lower, although the declines were probably much less than many were expecting. The close of sp'1430 is a little over 1% higher across the week, but some 18pts lower than the earlier high.


IWM

Nasdaq Comp

Dow

NYSE Comp

SP'500

Trans

Summary

Looking across the main six indexes, we can see the mid-term trend is still upward.

As has been the case all week, bears need to take out the recent low of sp'1413, and then 1398. Arguably, bears can not be confident of the general outlook until we are consistently trading under the important sp'1400 level.

Transports and the Rus'2000 have been especially strong this week, and the NYSE Composite  actually broke above the mid-September QE highs.


Staying focused on the key levels

The key support levels are clear. Bears need to get back under sp'1400, and bulls merely need more slow algo-melt higher to achieve yet another new high >1448. The one notable concern the bulls should have is the VIX, which has put in the fourth consecutive highly weekly close. Yes, the VIX is still very low, and even today could not break the 20 threshold, but it seems to be inexorably climbing.

A little more later.