Daily Index Cycle update

US equities closed severely lower for a third consecutive day, sp -77pts @ 1893  (intra low 1867). The two leaders - Trans/R2K, settled lower by -3.5% and -3.8% respectively. Near term outlook offers renewed weakness to the Oct'2014 low of 1820.. with VIX again in the 50s.


sp'daily

Dow, daily

R2K,

Trans

Summary

An incredible day in the US equity market, with the main indexes opening severely lower, then a hyper-ramp into the early afternoon.

Not surprisingly though, there was renewed severe weakness.. with a great many wild swings in the closing hour.
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The daily closing candles are ALL bearish, and bode for lower lows in the near and mid term.

If the R2K reaches the Oct' low of 1040, that would equate to sp'1725/00 zone.. with Dow 14000... and VIX 60/70s... an incredibly bizarre thought.

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a little more later...