Daily Index Cycle update

The US market saw some weakness to conclude the month, with the sp -5pts at 1632. However, the two market leaders - Trans/R2K, saw rather significant declines of 1.1% and 1.6% respectively. Near term trend remains weak, with a primary downside target of sp'1570/60s.


sp'daily5

R2K

Trans

Summary

I have to say, I'm a bit bemused at the large discrepancy between the headline indexes - sp/dow/nasdaq, and the two market leaders - Trans/R2K

As ever, I think its important to keep in mind that whilst the main media-friendly indexes only saw moderate declines, the two leaders were very weak indeed.

Regardless of whether there is any military action across the long 3 day break, the US indexes look broadly weak.

Any Tuesday bounce is one I will be seeking to short...all the way down to 1570/60. I actually think there is a very reasonable chance of that target being hit by the end of next week..along with VIX in the low 20s.

a little more later...