Daily Index Cycle update

US equities settled moderately lower, sp -12pts @ 2053. The two leaders - Trans/R2K, settled lower by -0.7% and -0.4% respectively. Near term outlook is very mixed, with threat of a move to the sp'2070s, but regardless.. renewed downside to sp'2010/00 zone looks probable.


sp'daily5b - downside targets

R2K

Trans

Summary

Fascinating day... with a surprising major fail in the market to continue rallying.

With the failure of the F flag, and overall weak price action (not least in energy stocks), the next bounce is likely to be just that... a bounce.

Market looks set to get stuck around sp'2075 or so.... and then rollover to the 200dma in the 2005/2010 zone.. that should equate to VIX testing the key 20 threshold.
--

Closing update from Riley


--
a little more later...