Thursday, 29 August 2013

Daily Index Cycle update

The main indexes generally closed with slight gains, the sp +4pts @ 1634. The two leaders - Trans/R2K, closed -0.1% and +0.3% respectively. Today was probably just a minor bounce, with much lower levels across the next few days. 





So, the bears didn't get any follow through today, but neither did the bulls manage a significant bounce. At best, the bulls managed gains of around 0.75%, but with a rather weak closing hour, around half of the gains evaporated.

Bears should be seeking at least one more VERY significant daily decline, on the order of Dow* -300/400pts.

*the Dow 14500/400 zone is offering support, but a failure..and then the bears would be able to manage a swift rout down to 14200/000.

I hold to the original outlook from the weekly charts, with a target of sp'1570/60s within the near term...which should equate to VIX back in the low 20s.

Indeed, I remain short the market..via LONG VIX.
a little more later...