Daily Index Cycle update

US equities closed lower for the fourth of five days this week, sp -21pts @ 1922 (intra range 1960/18). The two leaders - Trans/R2K, settled lower by -0.7% and -1.7% respectively. Near term outlook offers serious threat of a Monday gap lower <1900..  but with increasing threat of a short term floor.


sp'daily5

Trans

Summary

*yet another new low for the 'old leader' - Transports, @ 6934.
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The daily/weekly close was very bearish, as the sp' hit the target zone of 1920/00. There is SERIOUS threat of an opening gap lower under the 1900 threshold.. with empty air to the Aug' low of 1867.

The market will likely see a floor next Mon/Tuesday... before battling upward (upside/bounce target will be dependent on where we floor).

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a little more later...