Daily Index Cycle update

US equity indexes closed moderately mixed, sp +9pts at 1868 (intra range 1889/48). The two leaders - Trans/R2K, settled +1.0% and -0.2% respectively. Near term outlook is bullish, as the sp'1812 low looks set to hold for some weeks. Regardless of a bounce into February, the broader downside target remains unchanged.


sp'daily5

R2K

Summary

Suffice to add, it was a bit of messy day in equity land. Opening moderately higher (post ECB/Draghi), but then quickly cooling to sp'1848. With Oil then rebounding - despite another 4 million barrel net inventory gain, the market was dragged higher.

It would seem the sp'500 is headed for the 1940/70 zone. Sustained action >2K looks out of range, relative to the increasing downward momentum as seen on the giant monthly cycles.
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Closing update from Riley



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a little more later...