Daily Index Cycle update

US indexes closed moderately higher, sp +13pts @ 1938. The two leaders - Trans/R2K, settled higher by 0.3% and 0.9% respectively. Near term outlook is for a further wave lower, to sp'1910/00 zone, before a more significant rally can begin.


sp'daily5

R2K

Trans

Summary

A relatively quiet start to the week, but one which offered bulls and bears alike the opportunity to re-position.

The R2K closed with borderline sig' gains, but remains within a strong down channel. By end of this week, R2K just needs to be in the 1130s... but if the main market does see a further wave lower, then we're probably looking at R2K 1100. 

On any basis, the daily MACD (blue bar histogram) is close to flooring on ALL indexes, and it certainly does not make for the best of places to attempt a short side trade.
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Closing update from Mr TopStep



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a little more later...