Daily Cycle Update

A very bearish end to the week. Tuesday's major ramp was indeed merely a backtest against broken support - something I wasn't watching closely enough, but others (Albertarocks - see chartists) were. The style of today's close is certainly warning of much lower levels next week, but we could easily see a brief bounce early Monday. A quick retracement to 1295/1300 is still very viable, especially if some stupid nonsense rumour appears over the weekend.

Lets take a look at those doomy gloomy daily indexes!


IWM, bearish outlook

Dow

SP, bearish, count'2

Transports

Summary

The Transports were the clearest index this week, putting in a perfect little up wave...forming a bear flag...and it was the first to break under the flag yesterday. Today's move confirms the bigger cycle charts, and the tranny could in theory fall all the way to 3500 this year (doom scenario).

I'm very pleased with the bearish outlook charts, IWM to 70 seems a given, and SP'1225 now looks very viable by the end of next week.

The bigger cycle charts are even more clear..we're going to sp'1100 in the next month or so. If we can hold that level - and if the Bernanke makes an appearance..we'll see a mega rally into 2013.

....but if no new QE, and if Europe doesn't at least slow the rate of implosion, we might keep falling. If sp'1100 breaks, we'll move into a whole new scenario...one similar to the collapse wave of 2008 - as low as sp'800 by late Autumn.
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Across the weekend

The 'ten world indexes', which remain the most important regular chart update I provide. The world indexes were warning of trouble since January..and its all coming to pass.