Daily Index Cycle update

The main indexes saw some general weakness as the day progressed, and the sp' came within a point of taking out the Monday low. Yet, the market did put in what is probably an important 'marginally higher low', and that sets up much higher levels. First target is the sp'1650/55 zone.


sp'daily5

Trans

Summary

A pretty interesting day to be part of...and trade.

The bulls managed to kick the market back up from the danger zone in the closing 90 minutes. The close of sp'1631 is certainly not a 'great victory' for those on the long side, but it is a good 8pts above the daily low.

Transports saw a similar fall of 0.5%, and again its important to note, the tranny is still able to hold the important 6200s, closing @ 6257.
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Bulls should be keep in mind, if the bears can somehow overnight gap the market <1620, Transports will likely lose the 6200s, and that has rather big implications for the mid-term outlook. As ever, one day at a time.

Considering the hourly index charts though, and the marginally higher low, I'm guessing the market has a very reasonable chance of breaking into the important sp'1650s by late tomorrow/early Thursday.

a little more later