Daily Index Cycle update

The main indexes opened lower, but once again we saw a recovery across the day, and that was without any help from the Fed! The sp' closed with a reversal candle, but put in another close just a touch under 1650. Near term downside for next week still looks to be 1630/25.


R2K

sp'daily5

Trans

Summary

Another week comes to a close, and I have to say, it was pretty good. I was not expecting to short the indexes this week, but with the Bernanke speaking on Wednesday, the early signs of a reversal day made for a few good trades.

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Perhaps most notable today, despite the intra-day recovery/bounce, the daily MACD (blue bar histogram) cycle again ticked lower for all indexes. Price momentum continues to swing to the bearish side.

It is largely why I will be considering a further re-short on Tuesday, not least if there is an opening gap higher into the low sp'1660s. I think there is good opportunity for a short trade, from 1660, down to 1630/25, perhaps into early Wednesday.

That's all for today..and the week. Enjoy the long holiday weekend.
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*next main post, late Saturday, on the US weekly index charts.