Daily Index Cycle update

The US equity market opened weak, struggled across the day, but more importantly, it sunk into the close. The two leading indexes - Trans and R2K, both saw a rather severe fall of 3.8%, with the sp -2.3%. Near term looks very weak, but there is rather strong support @ sp'1538.


IWM, daily

SP'daily5

Trans

Summary

Today was an important day in market land. The daily closes were pretty severe - the deepest of 2013, its been a long while since we've seen falls of almost 4%.

Lets be clear... sp'1538 is the critical level for the market to hold.

Any failure to hold 1538, and the market could very easily free fall another 60pts to the primary target of sp'1480/70s.

However, if the bulls can make a stand across Tue/Wednesday, and hold the line, then a small rally into opex is possible, as high as the low 1570s.

From a trading perspective, its actually a very clear situation now.
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a little more later, on what has become something of a very busy..and long day.