Daily index cycle update

US equity indexes all closed significantly lower, sp -26pts @ 1946 (intra low 1941). The two leaders - Trans/R2K, settled -2.5% and -1.5% respectively. With the renewed weakness, equities look vulnerable to the sp'1920/00 zone next week.


sp'daily5

R2K

Trans

Summary

Unquestionably, a day for the equity bears

The declines in the two market leaders - Trans/R2K, were indeed significant, and they do bode for lower levels in the near term. The R2K just managed to hold the critical 1080s today, but considering the trend... R2K looks effectively completely broken.. as especially seen on the bigger monthly cycle.

Perhaps most important, the sp'1980/75 zone is now starting to become a strong resistance zone. Until we break above there, bulls have a real problem.

Right now, best near term downside targets for the bears...

Trans 8000/7900.
Dow 16300
R2K 1050
Sp' 1910/00

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Closing update from Riley

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a little more later...