Daily Index Cycle update

US equities closed significantly lower, sp -43pts @ 2057. The two leaders - Trans/R2K, settled lower by -2.0% and -2.6% respectively. Near term outlook remains bearish, with next support in the 2060/50 zone, where there are multiple aspects of support. Any failure of 2050... opens a fast move to the giant 2K threshold.


sp'daily5

Trans

Summary

*notable weakness in the 'old leader' - Transports... seemingly set to floor at either the psy' level of 8K... or a more severe 7700 - the Oct' low. It could be argued.. if 7700 is hit in the current wave.. there is a viable bearish H/S formation into the early autumn.
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A pretty rough day for the US equity market.. opening lower, a minor morning bounce, but then further downside across the afternoon.

There are numerous aspects of support in the sp'2060/50 zone... and considering a number of uncertain Greek hurdles yet to break through, we might even see a brief washout to the giant 2K level... along with VIX in the low 20s.
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a little more later..