A third day for the bears

US equity indexes closed broadly lower for a third consecutive day, sp -17pts @ 2079. The two leaders - Trans/R2K, both settled lower by around -1.1%. The VIX settled +23.1% @ 20.97. Near term outlook threatens a post FOMC (unsustainable) bounce to the gap zone of 2109/15, before far more dynamic downside to test the critical 2025 low.


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VIX'daily3

Summary

Another day for the equity bears... with the sp'500 having decisively broken the double low of 2085. There is soft gap support in the 2078/76 zone.

It is highly notable that the VIX managed a fifth consecutive net daily gain, the best run since Aug'2015.

Considering that we have already seen VIX 20s - with only the sp'2070s. A test of the sp'2025 low would likely equate to VIX in 28/32 zone.
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Broader cycles continue to turn

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A second blue candle... with a clear break of rising trend. We have a clear divergent lower MACD cycle high.. and we're set to see a bearish cross by end month. In theory, the most powerful downside will begin June 27-30th... with VIX 30s.. maybe 40s - if UK exit the EU... which now seems probable.

Things are getting interesting. 

Goodnight from London