Daily Index Cycle update

US equity indexes closed significantly lower, sp -36pts @ 1903 (intra low 1897). The two leaders -Trans/R2K, settled lower by -2.9% and -2.3% respectively. Near term outlook offers a moderate bounce, before a brief foray to 1890/80 zone... and then pushing back upward to the 1970s next week.


sp'daily5b

Trans

Summary

Suffice to add, broader market action from late December remains very bearish. Every bounce is being sold into.

Price structure on the Transports is particularly bearish, with a very clear multi-week bear flag. The 50dma remains first key resistance, and by end month that will be around 7100/7200.
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Closing update from Riley



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a little more later..