Daily Index Cycle update

The main indexes saw their biggest closing declines since last November, with the sp -2.5% @ 1588. Hourly charts are offering a bounce back into the 1620s, with a more severe wave down to at least 1550/30 by mid July, although 'best bear case' is sp'1510/1490 - by the end of next week.


sp'daily5

R2K

Trans

Summary

Well, we actually saw the second big down day in a row! For the bears, this is Easter and Christmas all at once ;)

Seriously though, with the VIX breaking into the 20s, the bears are back, at least for the near term.

With the break of rising support @ 1620, and the recent lows of 1608 and 1598, the primary target is the lower weekly bollinger...currently 1488 (but rising each day).

By mid July, that target will be in the 1550/30 area, which would equate to R2K @ 900, and Transports 5700/5600.
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a little more later