Daily Index Cycle update

US equities closed broadly weak, sp -35pts @ 2044, with a notable close under the 50dma of 2061. The two leaders - Trans/R2K, settled lower by -1.4% and -1.2% respectively. Near term outlook is offering a key floor... with renewed upside into next week's FOMC.


sp'daily5

Dow

Trans

Summary

*Transports is the weakest index, and we have a clear break of the rising trend from last October.
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I had expected Tuesday weakness to the sp'2065/60 zone... the daily close under the 2050 threshold was something of a surprise. Perhaps most notable though, the VIX is not reflecting any particular concern in the market.

In the immediate term, there is viable further downside to the 2030/20 zone.. but hourly cycles are offering a bullish MACD cross later tomorrow. On balance.. the situation favours the bulls into the weekly close.
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Closing update from Riley



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a little more later...