Daily Index Cycle update

With the Fed cutting QE by another $10bn, equities battled hard to hold the key sp'1767/65 zone, with the sp' settling -18pts @ 1774. The two leaders - Trans/R2K, slipped a significant -1.2% and -1.4% respectively. There are bear flags developing on most indexes.


sp'daily5

R2K

Trans

Summary

So..new weekly cycle lows for most indexes. The Trans/R2K look especially weak, and those could be multi-day bear flags forming. If yes, that would suggest the critical sp'1767/65 zone will NOT hold - offering a straight drop to the 200 day MA in the low 1700s.
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Sp'500 broke the Monday floor, although the VIX did not break the Monday spike high of 18.99.

Without question, the bulls will face real problems on any daily close <1765, but hourly index cycles look pretty exhausted in the near term. A rally to the sp'1810/15 zone still looks viable, and with heavy QE on Friday, bears should be cautious.
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Video update from Oscar



*interesting to hear how bearish Mr Permabull has become. Especially pleasing, is to also see him note the bear flags developing on the daily charts.

As noted, any daily closes <1765..and that is when things get real interesting.

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a little more later....