Daily Index Cycle update

The main indexes closed somewhat higher than the opening declines, but more importantly, much higher than the overnight levels. Near term trend looks to be upward for one final tiny up wave into Wed/Thursday, before a major down cycle begins - target sp'1470s.


IWM

SP'daily5

Trans

Summary

A pretty interesting day to be part of, not that I was trading the indexes, and I am now entirely content to be on the sidelines until after the FOMC announcement on Wednesday @ 2pm.

It would appear sp'1545 was the low of a tiny wave, and there is just one little up wave left to go.

The last small wave should be complete by late Wednesday or early Thursday.

I will be looking to launch a major re-short of the indexes, looking to ride a broad wave lower from the 1570s to the 1470s. Whilst QE continues - along with the mainstream delusion that 'everything is just fine', that decline will likely be choppy, and will probably take 4-6 weeks.

a little more later