Daily Index Cycle update

US equities ended the short week on a powerfully bullish note, sp +37pts @ 1906. The two leaders - Trans/R2K, settled higher by 1.3% and 2.3% respectively. Near term outlook offers threat of an opening Monday decline, but then climbing across much of next week, probably to the sp'1970s, with VIX 18/17s.


sp'daily5

R2K

Trans

Summary

*the second consecutive net daily gain for most indexes.
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With the sp'500 having imploded from 2081 to 1812 across 14 trading days, it is not surprising to see a bounce now well underway. Indeed, having already climbed around 4.7% from the Wednesday low, half of the bounce has already played out.

The FOMC will be a threat to equity bears next week, and it would seem a fib' retrace bounce to the 1970s is  probable.
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a little more later...