Daily Index Cycle update

US equities closed significantly lower, sp -29pts @ 2049 (intra low 2042). The two leaders - Trans/R2K, both settled lower by -1.8%. With the loss of the 200dma, near term outlook is borderline. Equity bulls need a strong counter rally on jobs Friday to at least partly negate the Wed/Thursday decline of -3.1%.


sp'daily5

Trans

Summary

*the 'old leader' - Trans, was borderline yesterday.. .and today saw decisive break of rising support, that stretches back to the Aug' lows.

Either equity bulls can strongly rally from here.. and FAST, or the trans is a clear early warning of trouble for the rest of the market.
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To be clear.. my best guess is for renewed equity upside, but I am surprised we broke (and closed) under the 200dma (sp'2064).
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a little more later...