Daily Index Cycle update

The main indexes closed lower for a second day, and despite the declines being very slight, we now have clear rollovers on many of the daily charts. The key downside target zone is sp'1440/25. It would seem very unlikely we'll go below 1420/15 any time soon.


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Summary

So, a second day lower for the equity market, and the daily charts are displaying a pretty obvious gentle rollover. Certainly, its nothing dramatic yet, and its easily possible we won't get any major down days in this new cycle. A few more days of sp -5/10pts a day could be all that we're going to see.

The important 50 day MA will be around 1420 by the end of this week, and my best guess is that we won't be going anywhere under that.

A brief spike in the VIX into the low 16s seems likely, and that would probably equate to sp'1435/25 later this week.
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*I am short from sp'1457, seeking an initial exit around 1445/40, perhaps as early as tomorrow.

A little more later