Daily Index Cycle update

US indexes closed significantly lower, lead by the Nasdaq and the R2K, lower by -2.6% and -2.3% respectively. The headline sp/Dow indexes fared much better, lower by -1.2% and -1.0%. Near term outlook is uncertain, and depends on whether the market loses the 1850s next week.


sp'daily5

Nasdaq Comp'

R2K

Summary

Perhaps most notable, is that today's daily candle was a bearish engulfing candle - where we broke above yesterdays high...but closed deeply below yesterdays low.

Near term outlook is indeed uncertain. Equity bulls need to hold the weekly 10MA - which will be in the 1850s next week. Considering the lack of upside power in the VIX, I'm inclined to believe the equity bulls will manage another wave higher.
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Closing update from Riley

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a little more later...