Thursday 3 December 2015

Daily Index Cycle update

US equity indexes closed significantly weak, sp -23pts @ 2079 (intra range 2104-2077). The two leaders - Trans/R2K, settled lower by -2.1% and -1.0% respectively. Near term outlook remains unchanged, with further upside to the 2115/20 zone... whether on the excuse of the ECB or the monthly jobs data.


sp'daily5



Trans


Summary

*Transports closed the day on a pretty lousy note, having tested rising support. A Thursday close <8K would be a real red flag.

A weekly close <8K would be a serious early warning... and will need to be carefully kept in mind.
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As for the sp'500, the daily candle was of the bearish engulfing type, and that does favour the equity bears in the near term.

Despite the daily close, renewed upside into the 2100s still looks highly probable.

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a little more later...