Wednesday, 9 October 2013

Daily Index Cycle update

The main indexes closed significantly lower, with the sp -20pts @ 1655. The two leaders - Trans/R2K, naturally saw heavier falls of -1.4% and -1.7% respectively. Near term trend remains very weak, and the sp'1627 low is now within range of being tested, certainly before the end of next week.




The Dow remains especially weak, and without question it has broken key support on the daily and weekly charts. The monthly cycle on the Dow is also weak..but more on that issue later.

Clearly, we're in a steady downward trend. The bears are still unable to see any major downside action, and from what I gather..sell side volume remains relatively light.

In many ways..both bears and bulls alike should be seeking some sort of capitulation day, although as anyone who has traded this market for more than a few years will some cycles, we don't always get such clear wash-out days.

a little more later..