The main indexes closed weak, with the sp -5pts @ 1683. The two market leaders - Trans/R2K, saw more significant declines of -1.1% and -0.65% respectively. Near term trend remains broadly bullish, and equity bulls should be seeking any weekly close >1675.
So..the bears finally managed the first daily equity decline of the month. Yet, considering the rather significant gains already this week, a minor pull back is not exactly unexpected.
Based on the bigger weekly charts, bulls should be able to comfortably sustain any Friday drop to the mid 1670s, but should most definitely be mindful if we break into the 1660s again.
Considering the strength seen in the Nasdaq, and indeed also the two leaders - Trans/R2K, earlier this week, I would be surprised if things unravel from here. The weekly charts simply don't support any bear case in the near term.
As ever, one day at a time, lets see how we close the week!
a little more later..