Daily Index Cycle update

The main indexes had a choppy trading day, and despite numerous small counter rallies, the main market closed moderately lower. The declines were again confirmed via a slightly higher VIX. The first downside target remains sp'1385. If that fails to hold, then a challenge of the recent 1343 low is on the menu.


IWM

Sp'daily5

Trans

Summary

Suffice to say, we're still yet to see our first major down day in this new cycle.

The underlying MACD (blue bar histogram) cycle ticked lower for a second day, and it could easily fall for another 7-10 days. Yes...all the way into mid December.

Bears really need an overnight gap <sp'1400, that will open up a quick decline to 1385, where we will then see how this market copes with re-testing the 200 day MA.

A little more later.