Daily Index Cycle update

The indexes opened sharply lower, but as has been the case for what seems like a thousand years, the bulls managed a latter day recovery. Most indexes closed only 0.2-0.5% lower. The Transports actually managed a daily gain of 0.4%, with a rather distinct flooring spike.

I will highlight all six main indexes today, since we have something important to keep in mind

IWM

Nasdaq Comp

Dow

NYSE Comp

SP

Trans

Summary

The important aspect for the bears to take away from today - despite the annoying latter day recovery, is the fact that another index broke below key rising support from the November low.

We now have the Rus'2000, Transports, NYSE Comp, and the Nasdaq Comp all below the old rising channel. The SP' did briefly spike below the lower channel, although it depends on how you draw it.
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Baring a rally to new highs on most indexes - in particularly the Trans and R2K, I'm not overly concerned at the Friday closing action.

Further, the weekly charts ARE rolling over, with the VIX still comfortably above the March low of 11.05.
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How will we open Monday? VIX hourly chart has good potential for upside, and bulls have already seen a bounce from sp'1539 to 1554. The next key resistance is 1563..and for the big/serious money on the short side..that's where a tight stop could be placed.

I'm still going to target the 1530/25 zone for early next week, with a VIX in the 16/17s.

a little more later..to close the week!