Daily Index Cycle update

The main indexes closed moderately lower, with the sp -14pts @ 1676. The two leaders - Trans/R2K, both closed around -1.1% lower. Near term trend remains weak, but the bears are still struggling to put in any consistent downside price action.


sp'daily5

Dow

Trans

Summary

The overnight futures were somewhat interesting, and indeed we opened in the mid sp'1670s, but then..the usual intra-day bounce of around 10pts really smeared what was initially a bearish open.

The closing hour was certainly weak, but trading volume remains very low, and equity bears are a very considerable distance from breaking key low of 1627. Only if that low is broken..and held under, can the equity bears have real hope for much lower levels this autumn.

Considering the recent price action since the FOMC high of 1729, the bears are going to struggle to break much below 1660.

a little more later...