Daily Index Cycle update

US indexes closed sharply lower, sp -39pts (-2.0%) The two leaders - Trans/R2K, settled -1.6% and -2.3% respectively. Near term outlook offers chance of a back test to the 1955/65 zone.. before more downside becomes viable.


Dow

R2K

Trans

Summary

Suffice to say... the daily charts are starting to look somewhat ugly.

We have clear breaks on all indexes - R2K remains the weakest, but even the Transports now looks headed for a test of its broader upward channel.

The monthly trends remain intact, but with the Dow seemingly headed for a test of the 200 dma in the 16300s... the bulls have a real problem looming in August.

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Closing update from Riley



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a little more later... to wrap up the month.