Daily Index Cycle update

US equity indexes ended the month on a moderately negative note, sp -13pts @ 2107 (intra low 2104). The two leaders - Trans/R2K, settled lower by -0.8% and -0.5% respectively. Near term outlook is for further weakness next week to around 2080. From there, renewed upside to 2160/80 zone in mid/late June.


sp'daily5

Trans

Summary

*Trans remains the notable laggard, with a new cycle low in the 8200s.. a clear 1000pts below the Nov'2014 high.
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Not much to add. Price action for the broader market was a little choppy this week, with an low on Tuesday of sp'2099. Certainly, the Friday close was bearish, and does offer a fairly high probability of further downside in the first half of next week.

However, with the 200dma now at sp'2041, the equity bears face huge support in the 2040/00 zone. Sustained action under the giant 2K threshold looks out of range for at least another month or two.

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a little more later...