Daily Index Cycle update

US equities saw further weakness with the sp -4pts at 1692, the fifth consecutive daily decline. The two leaders - Trans/R2K, saw declines of 0.7% and 0.1% respectively. Near term trend remains weak, but the bears aren't showing any real downside power, as reflected in a VIX back in the 13s.


sp'daily5

R2K

Trans

Summary

So, the sp'500 fell for a fifth day, and certainly, some bears are getting a little overly confident of 'big declines' this autumn.

I can only refer anyone with that view to go stare at a longer term daily or weekly chart. Whether you look at just this year..or all the way back to late 2011, the same pattern is there. Sporadic minor pull backs of a few percent..before renewed gains.

I would think most can agree that the VIX sure isn't indicating any underlying market concern. Indeed, VIX 13s are pretty astounding to reflect upon.

Just consider the last two times we saw the market lower for a fifth consecutive day..the VIX (Dec 2012 was 23), and in July 2012 (VIX 21).
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a little more later, looking at the effect of CNBC on stocks.